Barclays will shrink its 2014 bonus pool more than 17% to less than 2 billion pounds ($3.1 billion) as the U.K.’s second-largest lender cuts back its investment bank, a person with knowledge of its compensation strategy said.
Bloomberg News reports that the bank is seeking to avoid the criticism leveled by shareholders and politicians last year, when the bonus pool increased even as profit fell, said the person, who asked not to be identified because they aren’t authorized to speak about compensation publicly. Last year the bank paid out 2.4 billion pounds, an 11 percent jump from 2012.
Barclays on March 3 is expected to post a 6% increase in full-year pretax profit to £5.5bn from the year earlier, according to the average estimate of 16 analysts. The shares have risen 6.9% this year, the best performance among major U.K. banks.
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