Aug 5, 2019

Barclays reins in bonuses in push to hit profit target

Barclays cut the amount it set aside for bonuses by 23 per cent in the first half of the year as chief executive Jes Staley exerts a tighter grip on pay in a push to hit the bank's profitability target. The UK-based bank put £456m towards bonuses in the first six months of 2019 versus £593m in the same period last year, according to figures in its half-year results statement, reflecting a tougher approach to pay for its investment bankers. Bankers receive variable pay awards at the end of the year, but banks take a charge each quarter to reflect the rate at which bonuses accrue. Although Barclays does not break it out, most of the bonus pool is used to fund year-end awards for highly paid staff at its investment bank in London and New York, as opposed to those working in its UK retail lender or international payments unit. The bonus cuts come amid a push at Barclays to hit the lender's central profitability target for 2019 - a return on tangible equity in excess of 9 per cent - in part by improving returns at the underperforming investment bank.

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