Barclays to rethink its salary plan
BARCLAYS Capital has put plans to hike base salaries for its investment bankers on ice while it seeks clarification from the government on rules surrounding the bonus clampdown.
BarCap had intended to give basic pay rises of up to 150 per cent to many of its 22,000 employees, a move that would particularly benefit junior and back-office staff.
The cap on salaries at the bank would rise from £120,000 to £300,000 in an attempt to rearrange the balance between pay and bonuses in its remuneration packages.
However, BarCap planned to backdate the pay rises to June – giving its bankers a one-off cash windfall. Rules set out alongside the 50 per cent supertax on bonuses forbid short-term cash payouts which could be seen as a substitute for bonuses in the period between December and April.
A source said the bank was in discussion with the government over “all aspects” of the bonus supertax, including the issue of backdated pay rises.