Other top performers at group share £1.9bn bonus pool while 90,000 employees awarded £500 each in shares. The pay of Barclays’ chief executive has more than doubled to £10.5m, as an investment banking rebound and steady interest rates helped push the UK bank’s annual profits up by a quarter. CS Venkatakrishnan’s payout is one of the largest for a Barclays boss, having risen from £4.6m a year earlier in 2023.
His pay jumped as a result of the vesting of long-term bonuses and a rise in the value of Barclays shares that make up those payouts, according to the bank’s annual report. Shareholders will be asked to give the greenlight to a new pay policy at this year’s AGM that will cut Venkatakrishnan’s salary but boost his potential bonus, giving him the chance to earn up to £14.3m per year. Meanwhile, Barclays’ bankers have also cashed in. Top performers will share a bonus pool worth £1.9bn, up from £1.7bn a year earlier, while around 90,000 employees will each be handed £500 worth of shares.
Venkatakrishnan said this was meant to “further align their work with shareholders’ interests and enable them to benefit tangibly from the firm’s progress and success”. The payouts come as Barclays reported pre-tax profits of £8.1bn for 2024, up 24% from £6.6bn a year earlier. The strong performance was aided by a 7% jump in income from its investment bank, amid a rebound in dealmaking and market activity, as well as steady interest rates that supported income at its UK retail business.
The jump in profits came despite the bank putting aside its first-ever provision for the growing scandal around motor finance commissions, worth £90m. Lenders have been grappling with the fallout of a shock court judgment in October that vastly expanded a Financial Conduct Authority investigation. The landmark ruling determined that paying a “secret” commission to car dealers who had arranged the loans without disclosing the sum and terms of that commission to borrowers was unlawful. It has ignited fears of a major compensation bill that could rival PPI, and cost lenders a combined £50bn.
