Barclays investment bank bonuses seen down 30 pct
DAVOS, Switzerland |
DAVOS, Switzerland (Reuters) – Year-end bonuses at Barclays Plc’s investment bank are expected to be down about 30 percent this year, on average, a source familiar with the matter said on Thursday, making the UK bank the latest to cut back banker pay.
The cash portion of employee bonuses is expected to be smaller and may be capped, while the deferred stock component would be higher, the source said.
Barclays declined to comment.
The decline would be in line with moves at other major banks. Compensation consultants estimate that banker bonuses for 2011 fell about 30 percent, on average, with bonuses falling across Wall Street firms such as Goldman Sachs Group Inc (GS.N) and Morgan Stanley (MS.N).
Some banks are also taking unusual steps in structuring compensation for employees. Bank of America Corp (BAC.N), for instance, may give employees shares instead of cash as part of bonuses.
Banker pay has also come under intense scrutiny since the financial crisis of 2008, with increased regulatory pressure to curb pay.
Banks, looking to pare costs amid lackluster business and heightened regulation that has hit profitability, have also announced plans to shed tens of thousands of jobs since mid-2011.
(Reporting By Paritosh Bansal; Editing by Bernard Orr)
Article source: http://feeds.reuters.com/~r/reuters/INbusinessNews/~3/icJL5IxvtIE/davos-barclays-bonus-idINDEE80Q00920120127
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