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Barclays and RBS paid 521 staff more than £1m a year Barclays and RBS paid 523 staff more than £1m a year
(about 2 hours later)
A fresh row over City pay erupted on Friday when two of Britain's biggest banks – Barclays and bailed out Royal Bank of Scotland – revealed that 500 of their staff took home more than £1m in 2012. A fresh row over City pay erupted on Friday when two of Britain's biggest banks, Barclays and bailed out Royal Bank of Scotland, revealed that 523 of their staff took home more than £1m in 2012.
RBS, 83% owned by the taxpayer, revealed for the first time that 93 bankers were handed £1m last year even though the bank was hit by a £390m fine for rigging Libor. Barclays, fined £290m for manipulating the benchmark interest rate during 2012, paid 428 staff more than £1m. RBS, which is 83% owned by the taxpayer, was accused of having the "best paid public sector workers by a mile" after admitting for the first time that 95 bankers were handed £1m last year even though the bank was hit by a £390m fine for rigging Libor and suffered a prolonged computer breakdown.
Barclays admitted that 1,338 of its bankers received more than £500,000 and more than half its workforce – 71,581 staff – took home £25,000 or less. Barclays, fined £290m for manipulating the benchmark interest rate, paid 428 staff more than £1m. The pay deals at Barclays eclipsed those at HSBC, Britain's biggest bank, which earlier this week said 204 of its employees received £1m or more.
The pay deals at Barclays, which is providing more detailed disclosure about the earnings of its 140,000 staff than in the past, eclipse those at HSBC, Britain's biggest bank. HSBC, the only other bank to publish its annual report so far, has admitted 204 of its employees took home more than £1m. The scale of the pay five years on from the banking crisis prompted TUC general secretary Frances O'Grady said to say it justified the EU cap on bonuses. "It is as if the financial crisis never happened," she said, describing the pay as "obscene".
David Hillman, spokesperson for the Robin Hood Tax campaign, said: "Barclays' top bankers may be celebrating, but these bloated rewards are a reminder of just how out of sync with the rest of reality banks have become. If banks can afford to dole out such sums despite being dogged by scandals, they should be contributing more to the society they continue to fleece." Barclays highlighted the discrepancies between its highest and lowest paid staff by admitting that 1,338 of its bankers received more than £500,000 while more than half its workforce – 71,581 staff – took home £25,000 or less, prompting Dominic Hook, national officer at the union Unite to hit out against "the rampant inequality" in the 140,000 strong workforce.
TUC general secretary Frances O'Grady said Barclays' attitude to pay justified the EU bonus cap. "Barclays is acting as if the financial crisis never happened. But ordinary people, who have been made to pay for the folly of bankers, have longer memories and will find the size and scale of these payouts obscene," she said. At RBS, where chief executive Stephen Hester received £2.2m – when part payment of his 2010 bonus is included but before a £1.6m award of shares he could get in three years – the highest pay for one individual, £5.5m, contrasted with the average pay of £34,000. Some 1,950 RBS staff earn more than £250,000.
In accordance with rules set out by the government, Barclays disclosed that its top eight highest paid executives reporting to the chief executive received between £3.7m and £1.2m a year. Rich Ricci, the race-horse loving banker who runs the investment bank, appears to be the seventh highest paid with £1.5m after he waived his bonus as a result of the Libor fine. Lord Oakeshott, Lib Dem peer, said of the RBS bankers: "They're the best paid public sectors workers by a mile, in a bank that keeps failing the public by failing to lend. Let's end this nonsense and nationalise RBS now".
Included in more 25 pages of disclosure of pay, the bank complies with rules set out by international regulators showing that it has 393 "code staff" – those who monitor risks or take risks – who were paid an average of £1.3m. By publishing pay deals of those earning more than £1m the banks are complying with proposals first set out by Sir David Walker – the new chairman of Barclays – when Labour was in power but rejected by George Osborne when he became Chancellor. Osborne has welcomed the disclosure as allowing "shareholders to properly hold institutions to account for how they pay their staff."
During the year the bank's chairman, Marcus Agius, chief executive Bob Diamond and chief operating officer, Jerry del Missier, all resigned following the Libor scandal. Sir David Walker was appointed chairman and Antony Jenkins promoted to chief executive from running the retail bank. But it was Walker's appointment at Barclays that sparked the disclosures which showed that five individuals at the bank and one at RBS earned more than £5m.
In 2012 Barclays faced protests for paying £5.7m of tax incurred by Diamond when he relocated to London from the US to become chief executive. In 2012 that bill fell to £602,000, which took his pay to £1.9m after he forfeited £19m of shares when he left. Diamond continues to be paid by the bank until July 2013 – a year after he left – including £400,000 in benefits for the period. He will receive a lump sum of his £1.3m salary and £675,000 pension contribution in July. David Hillman, spokesman for the Robin Hood Tax campaign, said the payouts showed "just how out of sync with the rest of reality banks have become".
Jenkins was paid a salary for the full year of £833,000, received pension contributions of £215,000 and benefits of £81,000, while £2.1m of long-term incentive plans from previous years were paid out to him. He became chief executive at the end of August and during the year was awarded £4.4m of long-term incentive plans which pay out in three years time; the value of £1.5m is assigned for 2012. The bank produced a figure for his pay of £2.5m which takes account of the fact he waived his annual bonus for 2012 and included the £1.5m of the portion of long-term incentives awarded to him. The number of millionaires at Barclays is down and while RBS did not provide comparisons it is thought to have paid more than 500 bankers over £1m before the government bailout.
Agius is receiving £175,000 as an adviser to the Barclays corporate bank. The top eight highest paid executives at Barclays reporting to the chief executive received between £3.7m and £1.2m a year – a total of £23m. The individuals do not need to be identified but it appeared that Rich Ricci, who runs the Barclays investment bank, slumped to the seventh highest paid with £1.5m. For RBS the eight highest paid shared £14m although the highest paid – thought to be Ellen Alemany, who runs the US division – received £4.8m. Other top RBS earners are thought to include Nathan Bostock, head of risk, who got £3.1m, head of business banking Chris Sullivan who received £2m, and Ross McEwan the new head of the retail bank with £1.7m. The finance director Bruce van Saun, the only other executive on the RBS board with Hester, received a £980,000 bonus to take his total to £1.7m and he will get a 2% rise in his £750,000 salary this year.
The bank said: "We have made substantial reductions in remuneration, including clawing back £300m of unvested deferred and long-term incentive awards and risk adjustments of £860m to our 2012 incentives pool to reflect the Libor investigation and other risk issues in 2012." Barclays said average bonus was 8% to £4,800 and 45% of all investment bank did not receive bonuses although the bank is still paying out £1.8bn in total to its staff. Barclays profits dropped to £246m from £5.9bn a year ago. Top line profits rose 25% to £7bn.. Barclays also complied with rules showing that it has 393 "code staff" – those who monitor risks or take risks – who were paid an average of £1.3m. At RBS the 368 code staff had an average of £701,000.
At Barclays, keen to avoid a repeat of last year's revolt over pay, former chief executive Bob Diamond received £1.9m after the bank paid £602,000 towards his tax. He forfeited £19m of shares when he left and will be continued to paid until July this year – when he stands to get a £2m lump sum –and benefits such as health insurance and a driver of £400,000.
His successor Antony Jenkins, promoted from running the retail bank, was paid a salary for the full year – he became chief executive at the end of August – of £833,000, pension contributions of £215,000 and benefits of £81,000, while £2.1m of plans from previous years paid out.
Jenkins was awarded £4.4m of shares which pay out in three years time; the value of £1.5m is assigned for 2012. The bank produced a figure for his pay of £2.5m.
Marcus Agius, the former chairman, is receiving £175,000 as an adviser to the Barclays corporate bank.
The bank said: "We have made substantial reductions in remuneration, including clawing back £300m of unvested deferred and long-term incentive awards and risk adjustments of £860m to our 2012 incentives pool to reflect the Libor investigation and other risk issues in 2012."
Barclays said the 45% of all investment bank did not receive bonuses although the bank is still paying out £1.8bn in total to its staff after profits dropped to £246m from £5.9bn a year ago. Top line profits rose 25% to £7bn.