The share price of Barclays is up in the early stages of trading this morning (March 19th), after the bank revealed the executive pay it doled out in the last year.
It was announced by Barclays that its chief executive Antony Jenkins was given shares worth £3.8 million, although he cashed in a significant proportion of these because of tax reasons.
Barclays stated that it made underlying profits of £5.2 billion last year – which was a drop of 32 per cent on the previous 12 months – but its bonus pot was expanded by ten per cent, which meant it stood at £2.4 billion for the year.
Also included in the latest financial update from the bank was the news that it is planning to cut up to 12,000 jobs this year. It is expected that this will include 7,000 in the UK.
Mr Jenkins waived his annual bonus for 2012, but was still paid £1.6 million last year. The shares he was given as part of his package are not included in this amount and he is not eligible for role-based share allowances until June this year, reports BBC News.
Bankers' bonuses have become one of the hottest topics on the news agenda in the UK over the last few years, especially after Lloyds TSB and the Royal Bank of Scotland had to be bailed out by the UK government on the back of the global financial crash.
Skip McGee, Barclays' chief executive in the Americas, was given shares worth about £8.8 million, while a further £8.6 million was handed over by the bank to its joint head of corporate and investment banking Eric Bommensath.
The share price of Barclays is slightly higher this morning on the back of the news. By 08:35 GMT, stocks in the bank were over 0.6 per cent up for the session and were continuing to rise steadily on the London Stock Exchange.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.