Variable pay is falling.
Barclays cut the bonus pool for its investment bank by about 10% to 12%, according to people with knowledge of the matter.
Bloomberg News reports that individual employee variable pay for 2015 would have dropped more if the bank wasn’t cutting 1,200 jobs worldwide and closing operations across Asia, said the people, who asked not to be identified because the compensation plan isn’t yet public. For 2014, the investment bank paid out 24% less in bonuses, with the pool falling to $1.4bn.
The securities unit is in a period of flux as Tom King, who has been the sole head of the investment bank for almost two years, prepares to leave on March 4. Two months into the job, Barclays Chief Executive Officer Jes Staley has already taken an ax to the unit with the lowest returns, announcing thousands of additional job cuts and the closure of most of its Asian outposts, while imposing a hiring freeze to restrain costs.
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