It's good to be top.
Barclays may pay its top two executives share allowances as the European Union introduces limits on bonuses, according to a person with knowledge of the proposal.
Bloomberg News reports that the plan, which would have to be approved by shareholders, would involve a portion of fixed pay for Chief Executive Officer Antony Jenkins and Finance Director Tushar Morzaria being paid in stock, said the person, who asked not to be identified as the proposal is private.
The EU brokered a draft deal in February to outlaw banker bonuses that are more than twice fixed pay, a move lawmakers said would prevent excessive payouts and curb irresponsible risk-taking.
The Financial Times reports that several other big banks across Europe are thinking about taking similar steps, pay experts said.
'Most large banks operating in the EU are planning to pay allowances at least partly in shares for the most senior executives', Tom Gosling, head of PwC’s reward practice. 'This is to reassure shareholders that executive interests will remain strongly aligned with theirs, despite the increase in fixed pay'.
Barclays eyes shares plan for chief executive in pay revamp (subscriber content)
image: © Dick Johnson