CS Venkatakrishnan, chief govt of Barclays, might see his most pay rise by 45 per cent to £14.3 million beneath a pay overhaul being thought-about by the lender’s board.
The proposal would scale back his fastened wage almost by half, from £2.95 million to £1.59 million, however permit him to earn annual and longer-term bonuses price as much as eight occasions that new determine.
If accredited, this may improve the Barclays chief’s most pay bundle from £9.8 million to £14.3 million. Nevertheless, the financial institution would require a considerably larger “return on tangible equity” — a key profitability metric — than its present targets to set off the highest payouts.
Barclays has reportedly approached its greatest shareholders about shaking up the pay constructions for each Venkatakrishnan and finance chief Anna Cross. The financial institution’s remuneration committee is predicted 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 elevate the cap for senior employees final yr.
Final yr, an unnamed institutional investor reportedly urged Barclays to chop executives’ fastened salaries somewhat 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 frequently consults stakeholders and emphasised that whether or not or not modifications are launched, any up to date coverage “will continue to focus on rewarding sustainable performance, and close alignment with shareholders’ interests”.
