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Barclays To Reveal Pay Cuts To Defend Self Against 'Banker Bashing'

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Barclays To Defend Self Against 'Banker Bashing'
Barclays To Defend Self Against 'Banker Bashing'

Barclays will reportedly attempt to defend itself against "banker bashing" this week by revealing that it has cut pay and met targets for lending to businesses.

A source told the Sunday Telegraph Barclays will reveal on Friday that it has lent 13% or 14% more to British businesses in 2011 than agreed in its Project Merlin negotiations with the government.

The UK's five biggest banks agreed to make £190bnavailable to businesses in 2011, which was £11bn more than the previous year, although the targets for individual banks were not made public.

Barclays is also set to announce plans to cut pay by as much as 30% for 24,000 staff at its Barclays Capital investment banking arm as it responds to outrage over bankers' bonuses.

The figures are expected to be released as it reports pre-tax profits of between £5.5bn and £6bn, down from £6.1bn the previous year, after its powerhouse investment arm was hit by volatile market conditions in the final quarter of 2011.

But pay for the top executives will not be revealed until the company's annual report in the second half of March.

The newspaper said that chief executive Bob Diamond could trouser as much as £11m, including a bonus of between £2.5m and £3m.

On top of that, he received a salary of £1.35m and could be given long-term incentives worth as much as £6.75m, which will vest in three years, it added. With other benefits, that would bring his maximum compensation for the year to £11.7m.

The rewards for Diamond and other senior executives, which are still being drawn up by the bank's remuneration committee, are believed to be slightly smaller than they would have been as a result of the furore over bankers' pay.

The move comes just days after Royal Bank of Scotland chief executive Stephen Hester waived his bonus of nearly £1m and its former boss Fred Goodwin was stripped of his knighthood for leading the bank to the brink of collapse.

Labour leader Ed Miliband has called for a tax on bankers' bonuses ahead of a House of Commons vote on the issue on Tuesday.

British Bankers' Association chief executive Angela Knight today called for the public debate on banking not to "descend to personal attacks on individuals" and accused politicians of making "inflammatory speeches".

She added: "What was it all for? No doubt at the end someone is doing better in the polls than might otherwise have been the case.

"And everyone hates bankers so who cares if a few of them get hurt?

"We should all care. If we want this national debate to bring constructive results, we need to end the personal pillorying and the lobbing of catchy but insubstantial soundbites."

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Barclays bank to defend itself against 'banker bashing'

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