CS Venkatakrishnan, chief govt of Barclays, may 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 mounted wage practically by half, from £2.95 million to £1.59 million, however enable him to earn annual and longer-term bonuses value 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. 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 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 international competitiveness post-Brexit, and Barclays was the primary main financial institution to carry 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 probably align variable compensation extra intently with efficiency, whereas nonetheless providing high employees the next most reward.
A Barclays spokesperson confirmed that the remuneration committee often consults stakeholders and emphasised that whether or not or not adjustments are launched, any up to date coverage “will proceed to deal with rewarding sustainable efficiency, and shut alignment with shareholders’ pursuits”.