Barclays Capital increases remuneration pool
Even though Barclays Capital, the investment arm of Barclays Bank, saw a reduction in external revenue streams during the first six months 2010, compared to the first half of 2009, the company has increased its contribution to the remuneration pool by 18%. This is the liquidity pool from which remuneration and bonus payments are funded and has been a bone of contention for those working outside of the UK banking arena.
This comes despite the fact that first-time revenue at Barclays Capital fell by 32% compared to the corresponding period last year. However, while the income streams from external trading equated to £7.12 billion in the first six months, the company has also included accounting gains on its own bonds which increased the turnover to £7.91 billion. The higher figure has been used as the basis for the allocation of additional funding to the remuneration pool.
Despite the fact that the financial arena around the world has been in turmoil over the last two years, Barclays Capital has performed better than many and has indeed been looking to expand rather than reduce its exposure. Each time Barclays Bank reports profits, Barclays Capital seems to be the focal point of attention and criticism.
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