Barclays Plc will cap cash bonuses at 65,000 pounds ($102,000) for staff at its investment bank and defer awards for senior managers, according to a person with knowledge of the plans.
For the London-based bank’s 1,200 managing directors, bonuses for 2012 will all be deferred and paid in one-third installments from 2014 to 2016, half in cash and half in the bank’s stock, said the person, who asked not to be identified as the plans aren’t yet public.
The cap on cash bonuses is the same imposed by the bank last year, when it cut remuneration for top executives by almost half. Britain’s second-largest lender by assets was criticized by investors when it cut its investment bankers’ pay by only 9 percent.
For more junior staff, awards greater than 65,000 pounds and less than 250,000 pounds will see 35 percent of the total deferred and paid half in cash and half stock. Any bonus over 250,000 pounds will be deferred, with half being paid in cash and the rest in stock.
Sky News reported the bonus structure earlier today. Barclays declined to comment.