Barclays Plc (BARC), the U.K.’s second-largest bank by assets, may pay its top two executives share allowances as the European Union introduces limits on bonuses, according to a person with knowledge of the proposal.
The plan, which would have to be approved by shareholders, would involve a portion of fixed pay for Chief Executive Officer Antony Jenkins and Finance Director Tushar Morzaria being paid in stock, said the person, who asked not to be identified as the proposal is private.
The EU brokered a draft deal in February to outlaw banker bonuses that are more than twice fixed pay, a move lawmakers said would prevent excessive payouts and curb irresponsible risk-taking. U.K. Chancellor of the Exchequer George Osborne opposes the curbs, saying they would harm the competitiveness of the nation’s finance industry.
The proposed stock allowances would be based on seniority, and thus not form part of the calculation for bonuses, the person said. The bank is already considering a similar cash-based payment for more junior executives, a person familiar with the process said on Oct. 23.
The Financial Times reported the plan earlier.
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