If you want to work for Barclays’ investment bank, you should probably work in New York City. That’s where most of the bank’s front office staff are based. And that’s where its people are highest paid.
Yesterday’s 2014 Barclays remuneration report revealed that 54% of Barclays’ millionaires are situated in the US. That’s down from the 57% of Barclays’ bankers who were located in the US last year, but it’s still a solid majority.
Not only are Barclays’ US bankers highest paid, but they’re also more plentiful when it comes to front office roles. Right now, ‘Barclays Capital’ has 1,784 people registered with the Financial Conduct Authority (FCA) in London. By comparison, ‘Barclays Capital’ in New York City has 2,667 people registered with the Financial Industry Regulatory Authority (FINRA). That makes the number of front office investment bankers and traders in New York City nearly 50% greater than Barclays’ entire comparable investment banking presence in the UK.
Barclays’ large US presence is down to its acquisition of Lehman Brothers’ in 2008. At the time, Lehman employed around 10,000 people on Wall Street, so there have already been some substantial cuts to the US business. Further layoffs look inevitable. Although Barclays’ US business is focused around the capital-light core areas of equities sales and trading and corporate finance, analysts estimate that Barclays needs to make further cost savings of up to $1.53bn to meet its return on equity target. Taking out million dollar staff will be one way of achieving that.