Barclays defers bonuses for top investment bankers

LONDON Thu Feb 7, 2013 6:41pm GMT

A man passes automated teller machines at a Barclays bank branch in London August 30, 2012. REUTERS/Neil Hall

A man passes automated teller machines at a Barclays bank branch in London August 30, 2012.

Credit: Reuters/Neil Hall

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LONDON (Reuters) - About 1,200 top investment bankers at Barclays will not receive any upfront cash as the bank will defer awards over three years, a person familiar with the matter said.

Managing directors will get one-third of their 2012 bonus next year, a third in 2015 and a third the year after. Half the payout will be in cash and half will be in shares, the source said.

Bankers below managing director level getting a bonus of up to 65,000 pounds ($102,100) will get all of their bonus in cash straight away.

Those getting between 65,000 and 250,000 pounds will get 65 percent in cash, and the remaining 35 percent deferred over three years, half in shares and half in cash, the source said.

Payouts over 250,000 pounds will be deferred over three years, split between cash and shares.

The bank's 23,300 investment bankers will be told their bonuses on Friday.

Antony Jenkins, who took over as Barclays chief executive in August after a string of scandals, has said he will cut pay and costs across the investment bank, and is keen to show more restraint on bonuses than in the past.

The investment bank is nearing the completion of a raft of job cuts in the last two weeks as part of his plan to streamline the business, a source said on Wednesday.

Jenkins is due to unveil a strategic plan on Tuesday, when analysts expect about 2,000 investment bank jobs could be axed.

($1=0.6368 British pounds)

(Reporting by Steve Slater; Editing by Mike Nesbit)

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