Financial News

  • 4 February 2014, 10:54

Barclays Boss Antony Jenkins Gives Up Bonus

Barclays' chief executive will forgo his annual bonus for 2013 after the bank faced "very significant costs" over a series of scandals.

Antony Jenkins took over after predecessor Bob Diamond resigned in the wake of the Libor rate-rigging scandal.

He said he was proud of the progress made in overhauling the bank's reputation but said legacy and conduct issues had hit the bank hard last year.

"2013 has been a year of considerable positive change for Barclays, and I am particularly proud of the progress we have made in starting to rebuild trust, in defining and implementing a common culture, in repositioning the business for the future, and in significantly improving our balance sheet," he said.

"While all of these actions are in the long-term interests of our shareholders, I am aware of the very significant costs which have been required to address legacy litigation and conduct issues in 2013, as well as to exit assets and businesses we no longer wish to participate in.

"When combined with the substantial rights issue we completed in the autumn, I have concluded that it would not be right, in the circumstances, for me to accept a bonus for 2013, and I have therefore respectfully declined the one offered to me by the board."

Mr Jenkins would have been entitled to a payout of up to 2.75m, although he was not likely to have been offered this maximum amount, calculated as 250% of his 1.1m salary.

He also declined his annual bonus last year, meaning he has yet to receive the payout since taking over at the bank in August 2012.

Despite his actions, he is not thought to be trying to set a precedent of never receiving an annual bonus and is still in line for long-term incentives.

His decision comes after a year in which the bank added 2bn to its bill for customer mis-selling scandals.

The compensation pot for payment protection insurance has gone up by 1.35bn to 3.95bn.