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?
Share this..
Related stories
Service industries boost UK economy
Service industries boosted the UK's economy despite a flagging manufacturing sector, official government statistics revealed today.Figures from the Office for National Statistics show that the UK's gross domestic product (GDP) rose by 0.7 per cent in the first quarter of 2007, in line with overall expectations.Although the volume of output in the production industries was unchanged manufacturing f...
Read MoreWill Prudential be beaten by the markets?
It seems as though Prudential has finally received official clearance from the FSA (Financial Services Authority) with regards to a fundraising and the acquisition of AIG's Asian unit. However, there are growing concerns that volatility in the worldwide stock market could play a part in the forthcoming fund-raising which will raise in the region of $21 billion. The company had planned to raise...
Read MoreFathers 'putting careers on hold'
A new survey has suggested that fathers in the UK are putting their careers on hold in order to care for their children.The ING Direct study claims that 43 per cent of dads have 'put the brakes on' their careers and are turning down promotions and over-time.Just over 40 per cent of fathers (42 per cent) have even changed their jobs in order to work fewer hours and make time for their childcare res...
Read MoreWas Lockerbie bomber release connected to trade deal?
The Sunday newspapers are full of apparently leaked letters from the UK government with regards to potential trade deals in exchange for the transfer of al-Megrahi, the Lockerbie bomber. Despite the fact that the UK government has reiterated the fact that no trade talks were ever intermingled with talk of transferring al-Megrahi back to Libya, there appears to have been significant contact between...
Read MoreCo-op reveals profits rise but has concerns for the future
The Co-operative Group has today issued half year results which show a 17% rise in profits from £221 million over the corresponding period last year up to £260 million this year. There was a 12.6% increase in profits from its supermarket division even though there were distribution issues with regards to the integration of the Somerfield acquisition. However, it is the company's comments about t...
Read More