Barclays CEO’s maximum pay could rise by 45% to more than £14m
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New deal being considered by board cuts fixed pay but allows for much higher bonuses. The Barclays chief executive, CS Venkatakrishnan, could have his maximum pay package rise by 45% to more than £14m, as part of a deal being considered by the bank’s board.
The high street lender is understood to have written to the bank’s largest shareholders regarding potential plans to overhaul its pay structures for Venkatakrishnan and its finance chief, Anna Cross. The proposals, first reported by Sky News, involve a trade-off: cutting their fixed pay in exchange for being paid much higher bonuses. For the chief executive, that would mean slashing his fixed pay by nearly half from £2.95m to £1.59m, but allowing him to receive annual and longer-term bonuses worth up to eight times his new salary.
The move will take his maximum potential payout to £14.3m, up from a previous maximum pay package of £9.8m. That new upward cap, however, would require a huge jump in profitability – under a measure known as return on tangible equity – beyond the bank’s own current targets.
The decision is still being reviewed, with the remuneration committee due to outline any proposals in the bank’s annual report, which will be released alongside its full-year earnings on 13 February. Any proposals would then be put to a shareholder vote.
