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Barclays Cuts Investment Bank Bonus Pool for Third Year

  • ‘Front office’ compensation down 1%, up-front payouts increase
  • Junior banker pay said to increase, managing directors suffer
Bloomberg business news

Barclays Said to Cut Investment Bank Bonus Pool

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Barclays Plc cut the bonus pool for its investment bankers for a third year, while increasing the amount of the rewards it pays up-front.

Incentive awards for “front-office” staff fell about 1 percent to 875 million pounds ($1.1 billion) because of job cuts and a hiring freeze during 2016, the bank said in its annual report. The decrease would have been bigger if not for a drop in the pound that made paying U.S.-based employees more expensive. The lender took a 395 million-pound charge as it reduced the proportion of deferred pay and said it would recognize the cost of such awards sooner.