Barclays scraps EU bonus cap for British bankers
LONDON, Aug 8 (Reuters) -Barclays BARC.L has become the latest bank to drastically revise a cap on bonuses for its top bankers in Britain, an internal memo seen by Reuters showed on Thursday.
The lender's senior bankers will now be able to earn payouts of up to 10 times their base salary, up from a two-to-one ratio previously imposed by the European Union back in 2014 when the UK was a member.
"The revised bonus cap will not alter the way Barclays sets its incentive pool, which is based on overall Group performance," a spokesperson for the bank, who confirmed the contents of the memo, said.
"It will allow us greater flexibility to differentiate individual bonuses within a small and defined group of colleagues," he added.
Banks including Goldman Sachs and JPMorgan have already made similar moves to their variable compensation structures for their top UK-based bankers.
Barclays shareholders voted in favour of a proposal by the bank to remove the cap at its shareholder meeting this year.
The EU originally set the restrictions on pay in an effort to curb excess risk-taking at banks following the 2008 financial crisis.
Britain's financial regulators last October said they would remove the bonus cap, in a bid to increase the competitiveness of the country's financial sector.
Reporting By Lawrence White, editing by Sinead Cruise
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.