Barclays CEO under scrutiny for pay cut

Barclays is facing increased scrutiny regarding its executive compensation practices, particularly the £2.9 million fixed salary awarded to its CEO. This comes in the wake of the bank's decision to become the first British financial institution to revise its bonus structure following the UK government's removal of a cap on banker bonuses. The cap, which limited bonuses to twice the fixed salary, was a regulation inherited from the European Union. In a recent announcement, Barclays informed its employees that those classified as “material risk-takers” by regulators would now be eligible for bonuses that could reach up to ten times their fixed pay. This significant change is part of a broader strategy to attract and retain top talent in a competitive market, especially after the UK lifted restrictions last autumn that had previously constrained bonus payouts. While Barclays is making substantial adjustments to the compensation packages for approximately 1,500 employees, including traders and compliance staff, the bank has not yet revised the pay structure for its top executives. This has raised questions about the fairness and equity of the compensation system, particularly in light of the ongoing public discourse surrounding executive pay in the financial sector. As Barclays navigates this complex landscape, the bank's approach to executive compensation will likely continue to be a focal point for regulators, shareholders, and the public, as they seek to balance competitive pay with responsible governance.