Barclays is set to end its search for a new boss for its investment banking division. The bank had earlier sought to find a replacement for Tom King, its former chief executive of the investment division, who retired in February.
International Business Times reports that instead, the bank is considering eliminating that position and transferring the powers of that post to a smaller group of senior managers. This would help the bank reduce its ranks at the top management. The move, which is also expected to save the bank millions of pounds in salary and bonus pay, comes at a time when the bank is witnessing a decline in its trading and fee income.
The decision will also help in showing investors that Barclays is committed to reducing its wage bill, which has been the subject of criticism for shareholders in the past. They had in particular complained about the size of bonuses paid. King, for instance, had received $5.38m as bonus along with a share award of about $7.07m in the past. The overall bonuses paid by Barclays in 2015 were $2.36bn, of which $1.38bn was to its investment banking employees.
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