Barclays Plc will limit the cash portion of investment-banker’s bonuses to 140,000 pounds ($229,400), 24 percent below last year’s level, a person with knowledge of the plans said.
Bonuses for the London-based bank’s 1,200 managing directors for 2013 will be deferred and paid in three installments, said the person, who asked not to be identified because the plans haven’t been made public. The cap compares with a maximum of 185,000 pounds last year, the person said.
Chief Executive Officer Antony Jenkins said last week he will turn down his bonus for 2013, acknowledging that regulatory penalties and lawsuits have continued to impose costs on the bank after it raised 5.8 billion pounds from shareholders in October. Britain’s second-biggest bank by assets plans to cut hundreds of jobs at its investment bank, a person briefed on the matter said last month.
Jon Laycock, a Barclays spokesman, declined to comment. Sky News reported the limit earlier today.
The European Union agreed on rules last year to restrict bonuses that are more than twice fixed pay, a move lawmakers said would prevent excessive payouts and curb irresponsible risk-taking after the financial crisis.
The EU bonus caps are set to apply for the first time to awards given in 2015, based on 2014 performance. U.K. Chancellor of the Exchequer George Osborne opposed them, saying they would harm the competitiveness of the nation’s finance industry.