Barclays UK has announced today that it has paid bonuses to top staff in the corporate and investment bank worth £1.2 billion, which is an increase of 30% from last year. The bank said that it increased bonus allowances for the so-called ‘material risk takers’ – dealmakers – because they have had an important impact on the company’s business activities.
Barclays defines material risk-takers as senior executives and "employees whose professional activities could have a material impact on the Group’s risk profile." They are normally managing directors and senior traders.
Additionally, the lender stated that it has increased the bonus pool for all its employees, with the amount it put aside for variable compensation up by 23% to £1.9 billion.
Only 875 employees are classified as ‘material risk takers’ within Barclays International. The bank said that it has paid them far more than other business lines.
In a media press conference with journalists, CS Venkatakrishnan, Barclays’ Chief Executive, said that he was “very confident we have paid competitively.” In addition, he stated that the “war for talent is something that has been there for the last year and is going to continue into this year.”
The pay rise comes as Wall Street and European rivals have increased pay for their top performers. HSBC recently increased its bonus pool by 31% to $3.5 billion. Goldman Sachs also has increased bonus payments for dealmakers by up to 50% in 2021.
Expanding Financial Access
The move by Barclays aims to motivate and appreciate the work that its dealmakers are doing to offer better services to its customers. The lender continues to provide superior quality services to its clients.
Last month, Barclays partnered with Rainmaking, a major corporate venture builder, to build ‘Rise Start-Up academy,’ an online digital skills-building accelerator, to help startups across the world strive in their business activities.
In November last year, the lender expanded its prime brokerage services, a time when several other rivals stepped back from the space after the collapse of Archegos Capital. The Bank viewed prime services as a big opportunity to give clients different ways of diversifying their wealth.
Last year, Barclays partnered with Simply Business, a major insurance provider, to provide small and medium-sized businesses with access to a variety of affordable insurance coverages.
The above deals are the latest in a series of partnerships that Barclays has made in recent years to provide new financial services to its customers.
