Bonuses paid to avoid 'death spiral'.
The Telegraph reports that Barclays CEO Antony Jenkins says he was forced to increase bonus payments to senior executives after hundreds of key staff left the investment bank in America and he feared a 'death spiral' could grip the organisation.
Revealing the reasons behind the controversial decision to increase bonuses by £200m in 2013 despite profits falling at Barclays, Jenkins said that he had to act or the investment division would suffer.
It is thought that as many as 700 staff left the American investment bank, with the 'attrition' rate for resignations among senior directors almost doubling from 5% a year to nearly 10% after Barclays cut compensation in 2012.
Describing the bonus increase as the 'hardest decision' he had to take since becoming CEO in 2012, Jenkins said that he understood the widespread criticism the bank received but insisted it was 'the right thing to do'.
Hit the link below to access the complete Telegraph article:
image: © Paul Kline