Barclays 'May Defer Bonus Payouts'

Barclays 'May Defer Bonus Payouts'

A pay scheme that could defer bonuses for Barclays bosses until they retire is being considered by the under-pressure bank, it was reported on Sunday.

Barclays has a reputation as one of the top-paying institutions in the City, with long-term bonus plans previously paying out sums running to tens of millions of pounds for senior staff such as Jerry Del Missier and Rich Ricci.

And former chief executive Bob Diamond, who left the bank last month in the wake of its Libor scandal, has built up a fortune estimated by the Sunday Times Rich List to be worth £105 million.

Today's report in the same newspaper said the proposed new pay plan was modelled on a scheme at rival HSBC, where its staff will be well paid if performance targets are met but with almost all the rewards locked up for years.

As well as big payouts being in shares and held until the executive retires or leaves the bank, Barclays is also thought to be moving towards changing the targets used to determine bonuses, with rewards much more closely tied to the overall fortunes of the company rather than the individual's performance.

Barclays has endured one of the most turbulent periods in its history after it was fined £290 million by UK and US regulators for manipulating Libor, an interbank lending rate that affects mortgages and loans.

The affair led to the departure of Mr Diamond, triggered a fierce debate in Westminster over banking ethics and has spawned several closely watched hearings before the Treasury Select Committee.

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