Barclays becomes latest to lift cap on banker bonuses

8th Aug 2024 15:19

(Sharecast News) - Barclays has become the latest bank in the UK to lift the cap on senior banker bonuses, following in the footsteps of JPMorgan and Goldman Sachs.

The cap, which relates only to so-called material risk takers, has now been extended to 10 times' base salary, according to an internal memo cited by Reuters.

The previous cap was limited at just two times' salary, in accordance with EU limits in place since 2014 to curb excessive risk-taking.

These caps were scrapped by the Conservative Party last year, but Labour has made no plans to change the previous government's ruling.

Barclays' shareholders voted overwhelmingly in favour of lifting the remuneration ratios for material risk takers at the bank's latest annual general meeting in May.

A Barclays spokesperson cited by Reuters on Thursday said that the extensions "allow us greater flexibility to differentiate individual bonuses within a small and defined group of colleagues".

However, Ireland-based employees of the bank will still be subject to the EU rules.