Barclays Raises Bonus Cap for Senior Bankers

2 min read | August 09, 2024 06:48 PM AEST | By Team Kalkine Media

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Barclays Raises Bonus Cap for Senior Bankers — Image source: Shutterstock

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Barclays, a financial sector firm, has joined JPMorgan and Goldman Sachs in raising the cap on bonuses for senior bankers, marking a shift from previous restrictions. The new cap for material risk takers at Barclays has been set at up to 10 times their base salary, according to an internal memo reported by Reuters.

Previously, the cap was limited to twice the base salary, adhering to EU regulations implemented in 2014 to control excessive risk-taking. These restrictions were lifted by the Conservative Party last year, but Labour has not proposed any changes to the new rules established by the previous government.

The decision to lift the bonus cap was supported by Barclays (LSE:BARC)shareholders, who voted in favor at the bank’s annual general meeting in May. A Barclays spokesperson noted that the increased cap would offer more flexibility in differentiating individual bonuses within a specific group of employees.

However, employees based in Ireland will still be governed by the EU’s bonus cap regulations, which remain in place for them.

This move by Barclays aligns it with other major financial institutions that have previously adjusted their bonus structures. The increase is seen as a response to evolving regulatory environments and market conditions that impact compensation practices.

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