Barclays bank succumbs to public fury
It is rumoured that Barclays bank will introduce a bonus deferral system which will see top management defer up to 100% of their annual bonus for the next three years, middle ranking staff defer up to 75% of their bonus for next three years and low ranking staff defer up to 50% of their bonus for the next three years. It would seem that Barclays bank has succumbed to the public fury regarding banking bonuses but is this just saving face today and paying out tomorrow?
While the company has yet to confirm rumours in the financial press today, sources close to the company have indicated that the Barclays Capital bonus pool will also fall from 82% of net income last year in a move to quell fears of a return to the boom times in the financial sector. However, the truth is that many high-ranking staff at Barclays bank, and other UK financial institutions, will benefit enormously from share options as and when the UK economy recovers.
It is unlikely we will see a major recovery in the UK economy without an improvement in trading in the UK banking sector which will in the longer term almost inevitably have an impact upon some, but not all, banking share prices. So who will be the long-term winners?
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