Apr 22, 2019

Barclays to cut bonuses for investment bankers

Barclays is cracking down on its investment bankers' pay as the bank steps up its defence against activist investor Edward Bramson ahead of next week's annual meeting. Britain's last remaining global investment bank is planning to cut bonuses as part of a cost-cutting drive to boost returns at the underperforming investment division, according to several people briefed on the plans. Despite a Barclays-wide policy since 2016 to tie variable pay to performance, Tim Throsby, the former head of the investment bank, had successfully resisted attempts to cut investment bankers' bonuses even in areas where revenues had declined, they added. Bonuses for investment bankers accrue each quarter before being paid out at the end of the year, and the lower accrual in the first three months of 2019 will mean the final payment is lower. Analysts have cut their estimates for first-quarter pre-tax profits at Barclays International - the division that houses the investment bank - by 10 per cent versus their February predictions, according to a company-compiled consensus forecast.

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