☰ Menu eFinancialCareers

Lunchtime Links: Pain at Barclays as pay slashed, promise of massive job cuts to come

This doesn't apply to pay

This doesn't apply to pay

Yesterday we reported that Antony Jenkins’ retail banking faction was strengthening its hand at Barclays. Since then, the news surrounding the bank has gone from bad to worse. First, it was reported late yesterday afternoon that Jenkins had privately mentioned to investors that he wanted to cut 40,000 people from the bank’s 140,000 staff. Second, Barclays’ annual report and remuneration disclosures have been published this morning and there is a lot of talk therein about Barclays being on a ‘multi-year path to re-position remuneration.’

Barclays has attempted to mitigate the damage done by Jenkins’ comments to investors. The 40,000 job cuts are not a target, but an aspiration for the next ten years ‘people familiar with the matter’ told the Financial Times.  A Barclays insider told Sky News that Jenkins’ comments were simply, “blue-sky thinking about the long-term future.”

The bank has done far less to mitigate concerns over falling pay. In today’s annual report, Barclays instead lauds the fact that bonuses at its investment bank have been cut 20% since 2011, even though profit increased 37% over same period. Barclays also states that it’s deferring a far greater proportion of bonuses than is mandated by the FSA and that it expects to maintain one of the, “highest deferral levels globally.” Barclays had already said that it would defer 100% of all bonuses over £250k. Deferrals and pay cuts might cause “retention risk,” Barclays admits in today’s report, but adds that the group’s remuneration board has determined that cutting bonuses and deferring pay are, “a necessary step on the multi-year journey to reposition Barclays’ remuneration.”

Post Bob Diamond, people are still being paid millions at Barclays. However, as the table below from today’s remuneration report shows, there are far fewer of them than in 2011 – especially at the top end.

Remuneration at Barclays

Source: Barclays

Meanwhile:

BNP Paribas plans to double Asian private banking assets and revenues over the next 3-5 years. (Bloomberg) 

Stephen Hester’s bonus will be £700k this year. (Guardian) 

You are most likely to pass the CFA exams if you have both worked in finance and been educated in finance, but you still have a fair chance if you’ve done neither. (300 Hours)

Attribution error and the urge to moralize, causes us to focus upon individual failures rather than structural ones. The phrase “greedy bankers” is a cliche, but the phrase “overly powerful bankers” is not. (Stumbling and mumbling) 

Four signs that you should not bother applying for a job. (Daily Muse) 

Comments (0)

Comments

The comment is under moderation. It will appear shortly.

React

Screen Name

Email

Consult our community guidelines here