15th February 2011
Barclays announced a new compensation system following its Project Merlin deal with the government which will see it pay 7% less in performance awards than last year.
At its investment banking arm Barclays Capital, which saw pre-tax profits excluding own credit increase by 2% to £4.4 billion, the bonus pool will be 12% lower than last year.
MSN reported that overall remuneration to staff increased 20% to £11.9 billion while total performance-related pay, including bonuses which had been deferred from previous years, increased by 25% to £3.5 billion.
The Guardian reported that average pay per employee at BarCap rose to £236,000 from £191,000 last year.
On Citywire Barclays chief executive Bob Diamond is reported as saying that remuneration had been influenced by the banks' Project Merlin deal with the government.
'We are committed to demonstrating that we are both responsible in our compensation decisions and practices and that we take our regulatory obligations and UK government commitments seriously,' he said.
Chief executive Bob Diamond is due to receive an expected package of more than £9 million in pay and bonuses but details are unlikely to be revealed until Barclays releases its annual report next month.
Len McCluskey, general secretary of the Unite union, was not impressed. He was reported on MSNMoney as as saying the bonuses were "shameful".
"These bonuses undermine any claim by the Government that there is fair pay in banking. Those at the top of the big banks are paid more then 100 times the pay of those workers at the lowest level."
Andrew Oxlade, editor of Thisismoney tweeted @andrew_oxlade
"Barclays profit £6.07bn vs expected £5.7bn. Nice"
Barclays profits rise 30% to a mere £6bn – and here's how you helped pay for it
On the Guardian website BertrandChorizo questioned the average bonus quoted:
"Barclays Capital have a call and processing centre here in Liverpool. You can be assured that most of the 200 people there, many who are on redundancy notices, at not even on a 1/10th of the average of £236k.
If you take 10 people and give 9 of them £10 and 1 of them £1m, the average is £100k. But as you can see this average is a meaningless figure because it is 10,000 times more than what 90% get and 1/10th of the the 10%.
We don't know what the actual distribution was, but you can rest assured that it is nothing like the average and is most likely skewed towards the higher-earners already."
To recieve our free weekly email sign up here.