LONDON Feb 27 Britain's Barclays plans
to cut or claw back about 450 million pounds ($680 million) of
pay from its staff over a rate-rigging scandal that last year
forced out its chief executive and chairman, a person close to
the matter said on Wednesday.
About another 140 million pounds ($212 million) will be
clawed back from past pay packages due to other misdemeanours
such as mis-selling payment protection insurance (PPI) and
allegedly misinforming customers about interest rate swaps
products, the person said.
Barclays, fined about 290 million pounds last June by U.S.
and UK regulators for manipulating Libor benchmark interest
rates, will slash the 2012 bonus pool by roughly the same
amount due to Libor issues and claw back about 160 million
from employees' deferred share awards from earlier years, the
The bank declined to comment.
The scale of penalties, first reported by Sky News, shows
new Chief Executive Antony Jenkins wants to demonstrate the bank
is punishing staff for the reputational damage caused by the
scandals and address criticism from investors that pay was too
Barclays said two weeks ago it would still pay about 1.8
billion pounds in variable pay for 2012, down 14 percent from
2011. It will release further details on salaries in its annual
report, expected to be released next week.
The bank will also unveil more details about the pay levels
of all its 140,000 staff in the report in a bid by new Chairman
David Walker to improve transparency.
The bank is set to release pay bands for all staff, the
source said, including how many earned more than 1 million
pounds - a number that could top 500.
Walker has pushed for banks to release the numbers of staff
included in pay bands of 1 million to 2.5 million pounds, 2.5
million to 5 million pounds, and over 5 million pounds.
In the past, Barclays only disclosed the pay of its top
eight earners as well as the average pay of staff in risk
positions, or so called code staff. In 2011, 238 code staff
earned an average of 1.5 million pounds, including long-term