We may have spoken to soon this morning when we said BarCap was ‘only’ reducing its bonus pool by 32%, to £1.5bn (compared to the 60% reduction at UBS). Although the overall bonus pool is down by his amount, closer investigation reveals that non-deferred bonuses at BarCap are, in fact down 68%.
This state of affairs is revealed on the table below, taken from the Excel spreadsheet accompanying BarCap’s results. BarCap’s current year cash bonus is down 67% and the current year share bonus is down 95%. With 24,000 employees, the average non-deferred bonus for 2011 at BarCap was £16k. A further £48k has been deferred.
Overall, 75% of the BarCap’s 2011 bonus pool has been deferred, versus 47% in 2010.
BarCap is also imposing a £65k cap on cash bonuses. This looks bad: Credit Suisse’s cap is £173k; Deutsche’s is £168k. BarCap therefore looks like an outlier, and not in a good way.
It’s still not clear what BarCap’s deferral schedule is. The chart above suggests that of Barcap’s deferrals, half will be paid in cash and half will be paid in stock.
The chart below, also from BarCap’s results announcement, suggests £1.25bn of 2011 bonuses across the bank (admittedly these are not all from BarCap) are being withheld, with half vesting in 2012 and the remainder vesting in 2013 and beyond. It also suggests that BarCap bankers had their 2011 cash bonuses supplemented with up to £995m of deferrals from previous years, an additional £41k per head.
Barclays’ bonus deferrals: