Barclays reportedly sets investment bank overhaul

Calling it a radical overhaul, the FT reports the move will result in thousands of job cuts and boost pressure on the unit's heads - Tom King in the States and Eric Bommensath in Europe. The shakeup comes amid shareholder unrest following the bank's increasing bonus payments by 10% last year despite declining profits, and some investors have indicated they will vote against the compensation package at next month's annual meeting, putting pressure on Barclays (BCS +0.4%) CEO Antony Jenkins to take action.

The new strategy is expected to be unveiled before summer and could include replacing King and Bommensath, though Barclays denies plans for a leadership change. Both of them were appointed just one year ago.

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Comments (2)
  • Brian Barbour
    , contributor
    Comments (1321) | Send Message
    too right, bankers should not be paid any bonus if they are reporting a loss. It still amazes me how RBS though, being mostly government owned, is still allowed to give bonuses running at a loss.
    13 Mar 2014, 05:45 PM Reply Like
  • TheOptimist
    , contributor
    Comment (1) | Send Message
    It's about time all these hysterical comments about bonuses in banking stopped - it's not doing the economy any good at all as until the banks strengthen space on their books will remain a precious commodity too expensive for most. It's a false argument that the banks could make the issue go away by stopping paying bonuses. How many times now have we heard government (and government in waiting) say they'll get AB or C paid for by taxing bonus payments or some other bank sourced funds - the sheep can only be sheared when it has wool. The nonsense about "no bonuses when making a loss" is naive in the extreme. Parts of each bank are making profits to offset losses and the best people are at a premium in those areas and need to be rewarded when they make profits. Even the ones in loss making areas are limiting downsides by big figures and lesser people would not be able to do this. Just try to think it through; if a valuable building had fallen to rubble who would you want to rebuild it; properly skilled and able able craftsmen and women or an amateur weekend DIY'er? Those who are poor at their jobs already don't get bonuses and are being actively managed out.
    14 Mar 2014, 09:11 AM Reply Like
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