Barclays Cuts Bonuses by 450 Million Pounds After Libor ScandalHoward Mustoe
Barclays Plc plans to impose a 450 million-pound ($682 million) cut in bankers’ compensation to recoup the fine the British lender paid for manipulating Libor last year, said a person with knowledge of the situation.
The majority of the reduction will come from the 2012 bonus pool, with the remainder from earlier share awards, said the person, who asked not to be identified because the matter is private. London-based Barclays on Feb. 12 announced plans to cut 3,700 jobs and cut annual costs by 1.7 billion pounds after posting its first full-year loss in two decades.
Chief Executive Officer Antony Jenkins, who took charge in August, is seeking to return Britain’s second-biggest lender by assets to profit and avoid repeating regulatory mis-steps such as the 290 million-pound Libor-rigging fine that led his predecessor, Robert Diamond, to resign. Barclays follows Royal Bank of Scotland Group Plc, fined $612 million for manipulating benchmark interest rates, which said this month it plans to claw back three-quarters of the money from bonuses and awards already paid to employees.
A spokesman for Barclays declined to comment on the bonus reduction.
Barclays, the U.K.’s second-largest bank by assets, said earlier this month it will cut its bonus pool as it sets aside an additional 1 billion pounds to cover the mis-selling of payment-protection insurance and other products. Sky News reported the reduction for Libor earlier today.
-- Editors: Jon Menon, Simone Meier