Barclays's Staley Gets $1.6 Million Bonus in First Year as CEOStephen Morris and Richard Partington
Jes Staley awarded 60 percent of his maximum annual incentive
Number of bankers paid at least 1 million pounds falls to 364
Barclays Plc Chief Executive Officer Jes Staley received a bonus of 1.3 million pounds ($1.6 million) for his first year in charge after hitting almost two-thirds of his targets, as he reshaped the bank and disposed of unwanted assets.
Staley, 60, was awarded 60 percent of his maximum bonus opportunity for the year, giving him a total pay package worth 4.2 million pounds including salary and other benefits, according to the London-based bank’s annual report. The CEO will get a long-term incentive worth as much as 2.82 million pounds this year, and is eligible for an annual 2017 bonus of as much as 1.88 million pounds, subject to shareholder approval.
Barclays, the U.K.’s most high-profile investment bank, has to strike a balance between paying its advisory and trading staff enough to prevent them defecting to rivals, while not attracting the ire of regulators and politicians, whose memories of bank bailouts have not faded. When he was named CEO in October 2015, the bank said Staley could earn as much as 8.25 million pounds a year at Barclays in total compensation, about 14 percent more than his predecessor Antony Jenkins, whom the board fired.
“Jes Staley has demonstrated strong leadership, strengthened the management team and has instilled a more effective performance ethic and culture within the organization,” the remuneration committee wrote in the annual report. The CEO embedded a new strategy and shed unwanted assets to hit his performance targets and will have 70 percent of his annual bonus deferred in shares, vesting in five equal tranches from the third to seventh anniversary.
Bloomberg News reported on Wednesday that Barclays cut the bonus pool for its investment bank by a similar amount to last year’s decline, when it was reduced 7 percent. While the bank didn’t break out that change in its annual report, across the lender, the overall bonus pool declined 1 percent to 1.5 billion pounds. Total compensation costs rose 2 percent to 7.4 billion pounds.
Barclays said in its annual report Thursday that it changed its bonus deferral policy to pay more cash up front, aiming to improve “the link between in-year performance costs and the size of the incentive pool.” Vice-Chairman Gerry Grimstone had previously said he favors withholding bonuses paid in stock for up to a decade.
The number of staff earning at least 1 million pounds at the bank fell to 364 from 369 last year, with almost two-thirds of those employees based in the U.S., according to the filing. The bank said 11 people were paid more than 5 million pounds, an increase from nine a year ago when stripping out currency movements. The highest-paid senior executive below board level was awarded a pay package worth 6.7 million pounds.
Upon joining Barclays, Staley also got 1.93 million pounds of stock to buy him out of his unvested share award at JPMorgan Chase & Co., where he used to run the investment bank. He then bought a further 2,790,000 shares at an average price of 233 pence in November 2015, near where the shares were trading yesterday.
Barclays stock rose 2 percent to 240 pence at 11:04 a.m. in London.