Barclays Awards $53 Million in Bonuses, Led by Skip McGee
Barclays Plc (BARC), the U.K.’s second-largest bank by assets, paid 12 senior executives about 31.8 million pounds ($53 million) in stock, led by Americas chief Hugh “Skip” McGee.
McGee, 54, received 8.87 million pounds, the London-based bank said in a statement today. Chief Executive Officer Antony Jenkins was given shares valued at 3.82 million pounds.
Barclays last month drew criticism for boosting its 2013 total bonus pool as investment-banking profit shrank, and plans to cut as many as 12,000 jobs this year to eliminate costs after profit declined. Adjusted pretax profit fell to 191 million pounds in the fourth quarter from 1.4 billion pounds a year earlier, Barclays said in February.
The bank is planning an overhaul of the investment bank, which will include further job cuts and divesting some unprofitable businesses this year, according to a person with knowledge of the matter, who asked not to be identified because they weren’t authorized to speak publicly.
Barclays gained 2.2 percent to 236.05 pence in London trading, valuing the company at about 38.6 billion pounds. The market price on the day the shares were provided was 232.59, the lender said.
The second highest paid banker was Eric Bommensath, who co-runs the investment bank and received 8.65 million pounds in shares, according to today’s statement. Bommensath’s co-head, Tom King, was paid 3.81 million pounds, according to the statement. Finance Director Tushar Morzaria was awarded 1.08 million pounds in shares.
McGee joined Barclays in 2008 from Lehman Brothers Holdings Inc. after the U.K. firm bought the bankrupt company’s U.S. units. The lender ranks third in advising on North American mergers and acquisitions this year, behind Morgan Stanley and JPMorgan Chase & Co., according to data compiled by Bloomberg.
Barclays is also among currency-trading firms that have suspended traders amid a probe into alleged rigging of the foreign-exchange market. At least 21 employees of global banks have been fired, suspended or put on leave since Bloomberg News first reported in June that dealers said they shared information about client orders to manipulate benchmark rates used in the $5.3 trillion-a-day currency market. No firms or traders have been accused of wrongdoing by government authorities.
The executive awards published today compare with 40.3 million pounds shared among nine managers last year including Rich Ricci, the former head of the investment bank, who was awarded 17.6 million pounds in shares.
The bank last month set aside 2.4 billion pounds for 2013 bonuses, up from 2.17 billion pounds a year earlier.
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