Barclays Plc (BARC) Chief Executive Officer Antony Jenkins said he will turn down his 2013 bonus, acknowledging that regulatory penalties and lawsuits have continued to impose costs on the bank after it raised 5.8 billion pounds ($9.5 billion) from shareholders.
“I am aware of the very significant costs which have been required to address legacy litigation and conduct issues in 2013, as well as to exit assets and businesses we no longer wish to participate in,” Jenkins said in a statement today on the London-based bank’s website.
Barclays, the U.K.’s second-largest bank by assets, said last month it would take a charge of 330 million pounds for regulatory penalties and lawsuits in the fourth quarter after its rights offering last year. Regulators are investigating Barclays for possible manipulation of foreign-exchange markets and the bank is reviewing its trading over a “several-year” period, it said in October.
Jenkins, 52, could have been offered as much as 2.75 million pounds, two-and-a-half times his 1.1 million-pound salary, according to the bank’s annual report. A spokesman declined to comment on how much he was offered by the board.
Ross McEwan, CEO of Royal Bank of Scotland Group Plc, said in August he wouldn’t take a bonus for 2013, as the U.K. government-owned lender faces its biggest pretax loss since 2008. Lloyds Banking Group Plc CEO Antonio Horta-Osorio hasn’t said whether he will take a bonus for 2013. He’s entitled to a maximum of about 2.39 million pounds.
By contrast, JPMorgan Chase & Co. gave CEO Jamie Dimon a 74 percent raise to $20 million last year, bringing his pay closer to where it stood before he was penalized for faulty oversight of botched derivatives bets.
The board’s compensation package for Dimon, 57, who also serves as chairman, included $18.5 million in restricted stock, the New York-based lender said last month. His salary was unchanged at $1.5 million and he got no cash bonus, according to the filing.
Bank of England Governor Mark Carney urged bankers at a private meeting in Davos last month to moderate their compensation, people with knowledge of the matter said. He reminded the group that he has previously stood up for the industry by opposing bonus caps in the interest of financial stability, the people said.
Jenkins said a year ago that he is seeking to remove 1.7 billion pounds of annual costs by 2015 and last month the lender said it would eliminate jobs at its corporate bank. The lender plans to cut hundreds of jobs including directors and managing directors at its investment bank, a person with knowledge of the discussions said last week.
Barclays is also being probed over whether it properly disclosed 322 million pounds of payments to Qatar’s sovereign wealth fund as part of a 7 billion-pound fundraising during the financial crisis.
The bank was fined 290 million pounds for Libor manipulation in 2012, which led to the departure of then-CEO, Robert Diamond.
Last week, the lender named audit chief Michael Roemer as head of compliance, two months after Hector Sants stepped down citing “stress and exhaustion.” Roemer will be “accountable for ensuring that Barclays’s purpose and values underpin the conduct of all staff at all times,” the bank said.
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