Barclays Pays Managers $61 Million in Bonuses After LiborHoward Mustoe
Barclays Plc, the U.K.’s second-largest bank by assets, paid nine senior executives 40.3 million pounds ($61 million) in bonuses, less than a year after the bank was fined for manipulating benchmark interest rates.
Rich Ricci, head of its investment bank and one of the last members of former Chief Executive Officer Robert Diamond’s management team, was awarded 5.7 million shares valued at 17.6 million pounds, London-based Barclays said today in a statement. CEO Antony Jenkins was given 1.8 million shares valued at 5.59 million pounds.
Barclays, which was fined 290 million pounds in June for rigging the London interbank offered rate, is cutting 3,700 jobs to reduce annual costs by 1.7 billion pounds this year. The lender in February posted a net loss of 1.04 billion pounds for 2012, its first in two decades, as it set aside an additional 1 billion pounds in the fourth quarter to compensate clients wrongly sold interest-rate swaps and loan insurance.
“The share releases detailed in this announcement include deferred shares awarded from previous years’ annual performance bonuses and, in some cases, vesting of historical long-term incentive plans,” the bank said in the statement. “Barclays has revised its remuneration policy and all future incentive awards short and long-term, will be based on the new principles.”
The shares fell 0.8 percent to 295.2 pence in London trading today.
The awards compare with 28.5 million pounds shared among eight executives last year.
The head of the wealth unit, Thomas Kalaris, was given 5.5 million pounds of stock. Finance Director Chris Lucas, who said last month he would retire as soon as a successor is found, was awarded 1.23 million pounds.
The shares were valued at 308.1 pence apiece when the award was made, Barclays said.
Ashok Vaswani, head of Barclays’s U.K. retail unit; Valerie Soranno Keating, head of Barclaycard; General Counsel Mark Harding; Chief Risk Officer Robert Le Blanc and Shaygan Kheradpir, its chief operations and technology officer also received awards.
Fewer Barclays employees were paid 1 million pounds last year than in 2011, according to its annual report published March 8. The lender awarded 428 workers more than 1 million pounds in 2012, compared with 473 in 2011.
The average bonus given to employees fell 13 percent to 13,300 pounds, while awards at the investment bank declined 17 percent from the previous year to 54,100 pounds, Barclays said in February. Some 45 percent of all investment-bank employees got no bonus for 2012.
-- Editors: Jon Menon, Edward Evans