Barclays’ (LON:BARC) top investment banker has told staff he will sharpen divisions in bonuses this year, Bloomberg has reported today. The move comes with chief executive Jes Staley encouraging the investment bank to take more risks and recapture market share after years of retrenchment and dwindling profitability.
Barclays’ share price has jumped in London today, benefitting from a rise in the pound. As of 13:21 GMT, the shares were changing hands 3.04 percent higher at 193.10p, outperforming the benchmark FTSE 100 index which has fallen into the red and is currently 0.57 percent worse off at 7,418.29 points.
Pay cuts on the cards
People with knowledge of the matter told Bloomberg that Tim Throsby, recruited from JPMorgan Chase & Co in January to turn around Barclays’ trading division, had said that those consistently ranked in the lower half should expect to see their compensation shrink, while those in the top quartile will see it grow. The sources noted that he had said that the FTSE 100 lender must apply a healthier degree of differentiation in pay, responding to a question from the audience.
The move will come amid shareholder pressure on chief executive Jes Staley to improve the division’s performance.
In a separate development, WebFG News quoted analysts at Exane BNP Paribas as commenting yesterday that Barclays looked “most vulnerable of the UK domestic banks to a PRA [Prudential Regulation Authority] buffer” at the start of 2019, particularly given that it also lost 450bps in last year’s test and the PRA does not focus on just one year’s numbers. The comments came after Barclays emerged yesterday as one of the weakest UK lenders in the Bank of England’s latest stress test.