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Barclays bank chief Antony Jenkins to waive bonus | Barclays bank chief Antony Jenkins to waive bonus |
(about 4 hours later) | |
The chief executive of Barclays bank, Antony Jenkins, is to waive his bonus for last year. | |
He said it would be wrong for him to receive a bonus, given what had been a "difficult" year for Barclays. | He said it would be wrong for him to receive a bonus, given what had been a "difficult" year for Barclays. |
It is thought Mr Jenkins was in line to receive about £1m of a potential maximum entitlement of £2.75m. | It is thought Mr Jenkins was in line to receive about £1m of a potential maximum entitlement of £2.75m. |
Mr Jenkins took over as chief executive last August, just as Barclays was being rocked over mis-selling scandals and other issues. | Mr Jenkins took over as chief executive last August, just as Barclays was being rocked over mis-selling scandals and other issues. |
He said in a statement: "To avoid further unnecessary public debate on this matter, I wish to make clear that I concluded early this week that I do not wish to be considered for a bonus award for 2012 and I have communicated that decision to the board. | He said in a statement: "To avoid further unnecessary public debate on this matter, I wish to make clear that I concluded early this week that I do not wish to be considered for a bonus award for 2012 and I have communicated that decision to the board. |
"The year just past was clearly a very difficult one for Barclays and its stakeholders, with multiple issues of our own making besetting the bank. | "The year just past was clearly a very difficult one for Barclays and its stakeholders, with multiple issues of our own making besetting the bank. |
"I think it only right that I bear an appropriate degree of accountability for those matters and I have concluded that it would be wrong for me to receive a bonus for 2012 given those circumstances." | "I think it only right that I bear an appropriate degree of accountability for those matters and I have concluded that it would be wrong for me to receive a bonus for 2012 given those circumstances." |
Mr Jenkins' total potential pay package, including pension, basic salary, and incentives, was £8.6m. | Mr Jenkins' total potential pay package, including pension, basic salary, and incentives, was £8.6m. |
Banks are currently reviewing the size of bonuses for senior staff, and there were reports this week that Royal Bank of Scotland (RBS), which is 82% owned by the government, will set aside £250m for payments. Last year, RBS's chief executive, Stephen Hester, waived his bonus for 2011 and in June said he would not take a bonus for 2012. | |
Chancellor George Osborne told the BBC chief economics correspondent, Hugh Pym, that he welcomed Mr Jenkins' announcement. | |
Mr Osborne said: "All the banks need to understand it is a very difficult economic environment out there, that they have to be very sensible about their pay this year given that." | |
Commenting on the bonus situation for senior employees at RBS, the chancellor added: "Stephen Hester, the chief executive of RBS, has already decided not to take his bonus. | |
"I think RBS need to pay attention to the times we live in, and I'm confident they will." | |
Sign up, or resign | Sign up, or resign |
Barclays hit trouble last June, when it was fined £290m by British and US regulators for attempted manipulation of Libor and Euribor interbank rates between 2005 and 2009. | Barclays hit trouble last June, when it was fined £290m by British and US regulators for attempted manipulation of Libor and Euribor interbank rates between 2005 and 2009. |
The scandal sparked the resignations of three Barclays senior board members, including ex-chief executive Bob Diamond. He was replaced by Mr Jenkins, who was formerly head of retail and business banking. | The scandal sparked the resignations of three Barclays senior board members, including ex-chief executive Bob Diamond. He was replaced by Mr Jenkins, who was formerly head of retail and business banking. |
Barclays has also set aside £2bn to compensate customers for the mis-selling of payment protection insurance. | Barclays has also set aside £2bn to compensate customers for the mis-selling of payment protection insurance. |
On Friday, Barclays faced new claims that UK financial regulators were investigating the bank over money received from Qatar. | On Friday, Barclays faced new claims that UK financial regulators were investigating the bank over money received from Qatar. |
The Financial Times alleged that Barclays lent Qatar money to invest in the bank in 2008. Barclays was not immediately available for comment. | The Financial Times alleged that Barclays lent Qatar money to invest in the bank in 2008. Barclays was not immediately available for comment. |
Last month, Mr Jenkins ordered all Barclays staff to sign up to a new ethical code of conduct or quit. | Last month, Mr Jenkins ordered all Barclays staff to sign up to a new ethical code of conduct or quit. |