- Barclays plans to chop bonuses for underperforming funding bankers amid a capital markets stoop.
- The plan may result in extra departures after pay cuts and restructuring shook the financial institution.
- Barclays’ inventory has lagged behind rivals, which some say is because of its bloated funding banking arm.
Dozens of funding bankers at Barclays might need to go with out bonuses this 12 months.
Barclays, dealing with a stoop in capital markets exercise, is anticipated to chop payouts for its lowest-performing bankers, Bloomberg reported, citing folks acquainted with the matter.
Barclays declined a request for remark from Enterprise Insider.
The corporate has not but publicly introduced the dimensions of its 2023 bonus pool. Final 12 months, it supplied £1.79 million in incentive compensation, or about $2.21 million, to its workers — a drop from the £1.95 million, or $2.4 million, it supplied the 12 months earlier than.
If true, it might be one other bump within the street for Barclays, which has struggled to retain expertise. Early final 12 months, the agency noticed the exodus of greater than 30 of its roughly 200 managing administrators, in response to The Wall Road Journal. These departures have been spurred by a shake-up in Barclays’ funding banking arm, which included pay cuts as excessive as 40% for some managing administrators. The agency additionally backtracked on verbal ensures for pay ranges for some new hires.
An analogous disaster occurred in 2019 after the pinnacle of the funding banking unit stepped down unexpectedly.
Executives on the financial institution are actually involved that the bonus cuts often is the catalyst for one more mass exodus, Bloomberg reported.
Paul Compton, head of Barclays’ funding banking arm, warned his workers in November that their division was burning by an excessive amount of capital relative to different components of the financial institution, Bloomberg reported. Shareholders and the financial institution’s personal executives have additionally cited the dimensions of the division as a motive Barclays’ inventory worth is lagging behind opponents like Goldman Sachs and J.P. Morgan Chase.
Barclays additionally introduced Friday it was buying the banking arm of British grocery store chain Tesco for about £600 million, or $757 million.
