Barclays avoids defections

Barclays Building Sign

A disaster averted.

Barclays almost lost several key U.S. energy investment bankers this year after they raised concerns about compensation and tougher regulatory scrutiny of European firms, said people with knowledge of the matter.

Bloomberg News reports that senior members of Barclays’s U.S. oil and gas team, including co-head Gregory Pipkin, entertained job offers from Bank of America Corp. and Wells and Fargo Co. in April, said the people, who asked not to be named because the matter is private.

Hugh 'Skip' McGee, who became Barclays’s chief executive officer for the Americas in May, persuaded the group to stay said one of the people.

It isn’t clear whether McGee agreed to give them raises to get them to stay, one person said.

The proposed pay rules in the European Union, which would also apply to overseas units of European banks, would cap bonuses at no more than twice fixed pay, although there is no limit on base salaries.

That has led some banks to consider increasing base pay: HSBC Holdings Plc, Europe’s largest bank, said yesterday despite bonuses shrinking in the first half the base salaries received had been increased.

Hit the link below to access the complete Bloomberg article:

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image: © Elliot Brown

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