Barclays faces bonus backlash

Pointing Finger

On a collision course.

Barclays faces a backlash from shareholders over its decision to raise bonuses despite a fall in profits, with investors increasingly demanding CEO Antony Jenkins give more money to them and less to his staff.

Reuters reports that British banks have failed to rein in pay despite a new EU cap, leading to a threat that politicians and regulators in both Brussels and London might impose more curbs.

Few have drawn as much criticism as Barclays, where profits fell by a third but staff have just won a 10% bigger bonus pot to share for last year than the year before.

Jenkins said in a newspaper interview last week that he was forced to increase bonuses after an exodus from Barclays' investment bank in America left him fearing a 'death spiral'. But the excuse seems only to have annoyed shareholders who think he should have fought harder on their behalf.

'The bonus issue is on a collision course with shareholders again. I have been unhappy with this for a long time', one of the bank's institutional shareholders told Reuters on Tuesday.

To access the complete Reuters article hit the link below:

Barclays on 'collision course' with shareholders over bonus bonanza 

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