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For the first time in history, Barclays plc (LSE:BARC) revealed to the public details of how much the bank paid its employees, showing that there were in all, 428 people who received at least £1 million in 2012.
The move was in response to the call of transparency by British bank’s new Chairman of the Board, Sir David Walker, who assumed office last year.
In the bank’s annual report it said there were five people who received over £5 million in salaries, bonuses, and long-term share incentives, whilst 50 staff received between £2.5 million and £5 million, and rest of the 373 personnel received between £1 million and £1.25 million.
Barclays’ Group Chief Executive, Antony Jenkins, however, only received £2.6 million in total compensation as he declined to receive the bonus due him for 2012, in light of the public clamour over excesses in pay in the banking sector.
The British banking sector had suffered scandals after scandals in 2012, with Barclays being the first bank to be fined by UK and US authorities over manipulation of the London Interbank Offer Rate or LIBOR.
Jenkins’ predecessor, Bob Diamond, and former Chairman Marcus Agius resigned following the £290 million fine imposed by UK and US regulators that also prompted the bank to claw back some £300 million worth of bonuses from its pool.
Public interest and anger over how much banks pay for bonuses and other compensation last year have led to executive declining to receive their bonuses, which were questioned at a time of government austerity and belt-tightening of the British public.
As a whole, Barclays said remuneration for last year was 16% lower than the same in 2011 whilst incentives at its investment arm were reduced by 20%, despite an increase in adjusted profits – its attempt to temper the rage against executive pay.
Barclays’ total incentive for 2012 was 20% of adjusted pre-tax profit at £2.16 billion, averaging £13,300 per employee.
The UK has recently voted against a move to cap executive bonuses of companies headquartered in the EU saying the move will only increase salaries and hurt London’s status as a financial centre.
