According to an internal memo obtained by Reuters on Thursday, Barclays has become the most recent bank to increase the cap on bonuses for its top bankers significantly.
From a two-to-one ratio imposed by the European Union back in 2014, when the UK was a member, the lender’s senior bankers can now earn payouts of up to ten times their base salary.
A bank representative confirmed the contents of the memo. “The revised bonus cap will not alter Barclays’ incentive pool, which is based on overall Group performance,” the representative stated. It will allow us greater flexibility to differentiate individual bonuses within a small and defined group of colleagues,” he stated.
The modification only affects individuals classified as “material risk takers” (MRTs), a regulatory term for a group of workers whose actions may significantly affect a company.
According to the memo, MRTs at the bank’s Irish-based subsidiary that oversees its European operations will not be affected and will continue to be subject to the EU cap.
Banks like Goldman Sachs and JPMorgan have already made similar changes to their variable compensation plans for their top bankers in the United Kingdom.
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