Barclays’ chief Antony Jenkins who replaced Bob Diamond following the Libor scandal shame, is likely to receive £2.75m pay package, inclusive of a bonus worth at least £1m for 2012, spurning anger amongst the bank’s shareholders and consumer groups as the news comes of the year where Barclays shelled out £290m fine for rigging Libor rate. The seven-figure salary to Antony Jenkins, who is to reveal the turnaround strategy for Barclays next month, has been discussed with the bank’s major shareholders by Sir John Sunderland, the head of the Barclays remuneration committee.
Sir John Sunderland will face MPs inquiry over Barclays’ pay policies today. Antony Jenkins’ maximum bonus could be 2.5 times his £1.1m-a-year salary (£2.75m) and the bank has been keeping investors informed about his likely award for 2012. Last year, investors opposed the pay deal awarded to Bob Diamond, which included picking up his £5.7m tax bill in 2011, on top of his £17m share and pay package.
Antony Jenkins’ salary did not have to be disclosed until he joined Barclays’ board five months ago but in 2011 he was identified as the fourth highest-paid executive at Barclays with a £5.2m pay deal in 2010, before awards of shares paying out in the future.
The commission, set up by the government after the Barclays Libor fine, is calling witnesses on pay just as decisions are being made about the size of multimillion-pound pay package awards for bankers at Barclays, HSBC and the bailed-out Royal Bank of Scotland and Lloyds Banking Group.
Consumer groups also questioned bonuses for bankers in the wake of the on-going scandal over PPI, which has cost the industry £12bn and rising. Barclays has set aside a total of £2bn to pay claims. Do you think it is righteous on part of consistently failing banking groups to award their executives with such high pay?