Barclays risks shareholder backlash as managers share £16m share bonuses

Antony Jenkins Barclays

Barclays has handed out shares worth more than £16m to 11 members of its top management team, including chief executive Antony Jenkins.

Jenkins, who is hoping to avoid a rerun of last year’s row over bonuses at the annual shareholders’ meeting next month, received £4.3m in shares under long-term incentive plans, according to stockmarket disclosures.

Jenkins has already said he will take his first annual bonus – worth £1.1m – since taking the helm in the wake of the 2012 Libor-fixing scandal. He has another long-term share plan due to pay out in May that is expected to be worth £1.8m – but could have been worth more than £6m had all the performance targets been met.

The payouts come as the bank awaits a fine for its role in rigging foreign exchange markets for which it has set aside £1.25bn and amid reports that the banks is poised to a settle a civil case in the US, alongside Citi, for £550m.

The disclosures to the stockmarket reveal that the new chief operating officer Jonathan Moulds received £116,000 in shares, the first instalment of the quarterly allowance he is being awarded to sidestep the European Union bonus cap. Banks such as Barclays are paying allowances alongside salary and bonuses to their senior staff to get round the cap limiting payouts to no more than a banker’s salary, or double the salary if shareholders approve.

The largest payout in shares went to Tom King, head of the investment bank, who received £4.7m.

The scale of the share payouts is less than the £32m announced a year ago although comparisons are difficult as highly paid investment bankers such as Hugh “Skip” McGee – who received £8.8m a year ago – have left the bank.

Barclays has attempted to avoid a repeat of the controversy in 2013 when it announced the share payouts on the same day as the budget and revealed that the then head of the investment bank, Rich Ricci, received £17.6m worth of shares. This year’s announcement came 24 hours before George Osborne sets out his last budget before the general election.

Powered by Guardian.co.ukThis article was written by Jill Treanor, for The Guardian on Tuesday 17th March 2015 20.00 Europe/London

guardian.co.uk © Guardian News and Media Limited 2010

 

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts