CS Venkatakrishnan, chief government of Barclays, may see his most pay rise by 45 per cent to £14.3 million underneath a pay overhaul being thought of by the lender’s board.
The proposal would scale back his mounted wage practically by half, from £2.95 million to £1.59 million, however permit him to earn annual and longer-term bonuses value as much as eight instances that new determine.
If permitted, this is able to improve the Barclays chief’s most pay package deal from £9.8 million to £14.3 million. Nonetheless, the financial institution would require a considerably increased “return on tangible fairness” — a key profitability metric — than its present targets to set off the highest payouts.
Barclays has reportedly approached its largest shareholders about shaking up the pay buildings for each Venkatakrishnan and finance chief Anna Cross. The financial institution’s remuneration committee is anticipated to stipulate any formal plans in its annual report on 13 February, alongside the discharge of full-year earnings, after which put these plans to a shareholder vote.
The transfer comes amid a shift away from the EU’s bonus cap, which as soon as restricted financial institution bonuses to twice a banker’s wage. UK regulators scrapped that restrict in late 2023 to spice up the Metropolis’s world competitiveness post-Brexit, and Barclays was the primary main financial institution to raise the cap for senior employees final yr.
Final yr, an unnamed institutional investor reportedly urged Barclays to chop executives’ mounted salaries reasonably than merely scrapping the bonus cap. In response, the proposed revamp would doubtlessly align variable compensation extra intently with efficiency, whereas nonetheless providing prime employees the next most reward.
A Barclays spokesperson confirmed that the remuneration committee usually consults stakeholders and emphasised that whether or not or not modifications are launched, any up to date coverage “will proceed to deal with rewarding sustainable efficiency, and shut alignment with shareholders’ pursuits”.
Jamie Younger
Jamie is Senior Reporter at Enterprise Issues, bringing over a decade of expertise in UK SME enterprise reporting.
Jamie holds a level in Enterprise Administration and usually participates in business conferences and workshops.
When not reporting on the most recent enterprise developments, Jamie is enthusiastic about mentoring up-and-coming journalists and entrepreneurs to encourage the subsequent era of enterprise leaders.
