The former chief executive of Barclays is in line to receive a bonus worth half a million pounds, despite being sacked by the bank last summer.
Antony Jenkins left the bank in July after three years in the top job, with the board saying that “a new set of skills were required for the period ahead”. When he left, Barclays said that his contract entitled him to 12 months’ notice from the company.
This meant that until 7 July 2016 he would continue to receive his existing salary of £1.1m, an additional allowance worth £950,000 a year paid in shares, a pension allowance worth £363,000, and other benefits. He was also still eligible to receive a pro-rata bonus related to his performance in the first part of 2015.
Barclays announces its annual results on Tuesday, and Sky News said the bank would announce a £500,000 bonus for Jenkins in the accompanying renumeration report.
The figure, which the bank would not comment on, would be worth around a quarter of Jenkins’ fixed pay. A share bonus scheme that formed part of Jenkins’ renumeration of the bank and was also performance related could yield further payouts worth several millions. The shares, which were awarded under a long term incentive plan (Ltip), would cover only his time at the bank.
In 2015, after waiving payouts in his first two years at the bank, Jenkins accepted a bonus of £1.1m, equal to 57% of the maximum he could receive. Combined with other incentives and benefits, his renumeration package added up to almost £5.5m.
In July, Barclays reported that although it had set set aside £1.8bn to cover fines for rigging foreign exchange markets and payouts to customers for mis-selling PPI and packaged bank accounts, its first-half profits had risen by 25% to £3.1bn.
In December it emerged that Jenkins had been told about his sacking in a phone call from the bank’s chairman John McFarlane.
The traditional bankers’ bonus season is in full swing, with RBS, HSBC and Lloyds already announcing their payouts for senior staff. On Friday the taxpayer-backed RBS defended a £3.8m package for its chief executive Ross McEwan, which came as it announced a £2bn annual loss. The results for 2015 mean the bank has lost £50bn since its 2008 bailout by the government.
Meanwhile the former governor of the Bank of England, Mervyn King, warned that another financial crisis is “certain”, because the banking system had not been reformed since the last crash. In an extract from his new book published in the Telegraph, the now Lord King wrote: “Without reform of the financial system, another crisis is certain, and the failure … to tackle the disequilibrium in the world economy makes it likely that it will come sooner rather than later.”
King wrote that the world recovery had been “neither strong, nor sustainable, nor balanced. There seems little political willingness to be bold, and so perhaps we should fear that the size of the ultimate adjustment will just go on getting bigger.”
Central banks were locked into low interest rates, he added: “They are in a prisoner’s dilemma: if any one of them were to raise interest rates, they would risk a slowing of growth and possibly another downturn.”
This article was written by Hilary Osborne, for theguardian.com on Sunday 28th February 2016 17.20 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010