Barclays Ends Sales-Based Bonuses for Consumer Bank Employees
Barclays Plc (BARC)’s consumer unit will stop awarding bonuses to employees based on sales and instead focus on customer satisfaction as Chief Executive Officer Antony Jenkins attempts to bolster the lender’s reputation.
Britain’s second-largest bank by assets will hire a company to poll customers on the quality of their experience and use the data to decide bonuses, Emma Austin, a spokeswoman for London- based Barclays, said by telephone today. About 18,000 U.K. workers in the division were told yesterday of the plan, which takes effect Dec. 1.
Jenkins said last month that employee performance will be measured against the firm’s values as well as financial achievement as part a plan to overhaul the bank’s culture following a number of banking scandals. British regulators said last year that consumers may receive as much as 9 billion pounds ($14.4 billion) in industrywide compensation as a result of improper sales of loan insurance. Incentive programs for employees are likely to encourage people to mis-sell to meet targets and receive bonuses, the Financial Services Authority said last month, following a review of 22 firms.
Barclays last month was also criticized by lawmakers for being slow to redress customers mis-sold interest-rate hedging products after setting aside 450 million pounds for compensation.
Jenkins succeeded Robert Diamond in August after the bank was fined a record 290 million pounds by U.S. and U.K. regulators for manipulating the London interbank offered rate, a benchmark for more than $300 trillion of securities.
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