Barclays Plc, Britain’s third- largest bank, reduced bonuses for employees of its investment- banking unit, Barclays Capital, by about 15 percent on average, according to three people with knowledge of the matter.
Investment bankers, traders and analysts at the London- based company were informed of their 2010 awards yesterday, said the people, who declined to be identified because the information hasn’t been made public. The firm allocated 2.7 billion pounds ($4.32 billion) for the payouts last year.
Compensation for managing directors will be paid 50 percent in cash and 50 percent in stock that vests over three years, one of the people said.
At the end of the third quarter, Barclays allocated 2.2 billion pounds ($3.5 billion) for bonuses. Earlier this week, Chancellor of the Exchequer George Osborne announced an agreement with Britain’s biggest banks, including Barclays, Lloyds Banking Group Plc, HSBC Holdings Plc and Royal Bank of Scotland Group Plc, that they would pay lower bonuses and boost lending. RBS, the U.K.’s biggest taxpayer-owned lender, cut the amount it set aside for bonuses at its investment banking unit by 27 percent to less than 950 million pounds, the Edinburgh- based lender said on Feb. 9.
Mark Lane, a New York-based spokesman for Barclays, declined to comment and said the final bonus pool allocation will be made public when annual earnings are disclosed.
Barclays will be the first of Britain’s five biggest banks to report results on Feb. 15. The company may say pretax profit excluding asset sales rose to 5.7 billion pounds from 5.3 billion pounds in 2009, helped by a decline in writedowns at its investment-banking unit, according to the median estimate of 21 analysts surveyed by Bloomberg.
Investment bankers, traders and analysts at the London- based company were informed of their 2010 awards yesterday, said the people, who declined to be identified because the information hasn’t been made public. The firm allocated 2.7 billion pounds ($4.32 billion) for the payouts last year.
Compensation for managing directors will be paid 50 percent in cash and 50 percent in stock that vests over three years, one of the people said.
At the end of the third quarter, Barclays allocated 2.2 billion pounds ($3.5 billion) for bonuses. Earlier this week, Chancellor of the Exchequer George Osborne announced an agreement with Britain’s biggest banks, including Barclays, Lloyds Banking Group Plc, HSBC Holdings Plc and Royal Bank of Scotland Group Plc, that they would pay lower bonuses and boost lending. RBS, the U.K.’s biggest taxpayer-owned lender, cut the amount it set aside for bonuses at its investment banking unit by 27 percent to less than 950 million pounds, the Edinburgh- based lender said on Feb. 9.
Mark Lane, a New York-based spokesman for Barclays, declined to comment and said the final bonus pool allocation will be made public when annual earnings are disclosed.
Barclays will be the first of Britain’s five biggest banks to report results on Feb. 15. The company may say pretax profit excluding asset sales rose to 5.7 billion pounds from 5.3 billion pounds in 2009, helped by a decline in writedowns at its investment-banking unit, according to the median estimate of 21 analysts surveyed by Bloomberg.
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