BZW chief banks more than pounds 3m

Barclays paid Bill Harrison, chief executive of its BZW investment bank unit, pounds 2.85m last year, in part due to a pounds 1.5m "golden hello" for when he joined from Robert Fleming.

This is in stark contrast to Barclays' chairman, Andrew Buxton, who received pounds 506,000 in salary and bonuses last year, while the chief executive, Martin Taylor, was paid pounds 820,000.

The bank's annual report, published yesterday, also shows that Mr Harrison was guaranteed an annual bonus of pounds 1.25m payable at the end of this month. He was also paid a third of his pounds 300,000 salary since joining last September.

Mr Harrison's total "emoluments" for the year increased to over pounds 3.1m when share award schemes and pension contributions are included.

A Barclays spokesperson said that most of Mr Harrison's pay package was a one-time cash payment that was the cost of recruiting him and was required to attract a manager of his calibre. The guaranteed bonus was also a one-off.

"It's not that he's going to get pounds 2.9m every year," said the spokesperson. "He's going to get pounds 300,000 plus a bonus."

Mr Harrison's guaranteed minimum bonus for 1997 is pounds 900,000, which is payable by the end of March next year, according to the accounts.

The spokesperson added that Mr Harrison's pay should only be judged against that of his American investment banking rivals, who often get much more.

The figures come against a background of difficult times for BZW. Its pre-tax profits fell 29 per cent to pounds 204m last year as an 18 per cent rise in costs out-stripped revenue growth.

Mr Harrison, former head of investment banking at Flemings, was hired after the death of his predecessor David Band last March. Mr Taylor picked him as the man to lead BZW on to the world stage, where at the moment New York-based "bulge bracket" investment banks like Morgan Stanley and Merrill Lynch dominate.

Mr Band and Mr Taylor had already identified a key obstacle to joining the bigger US rivals, the relative weakness of BZW's markets division. This division includes bonds, derivatives and foreign exchange, and it underperformed last year.

Since his arrival Mr Harrison has embarked on an aggressive and expensive hiring campaign. Bob Diamond, former vice chairman of Credit Suisse First Boston, has been headhunted to lead the markets division. More than 140 new staff have arrived since Mr Diamond joined.

This drive continued yesterday with the top-profile appointment of Roman Schmidt, head of German capital markets at Deutsche Morgan Grenfell, to be BZW's new global head of debt syndicate.

Mr Schmidt is well known in the City as a key player in the European capital markets, and he has just completed six years with Deutsche Bank in Frankfurt. Prior to that he worked at CSFB in London, and he typifies the big appointments Mr Harrison has been making in an attempt to turn the investment bank around.

The downside of this hiring has been that BZW has been forced to let go other employees. Buying these City people out of their contracts added pounds 45m to BZW's wages bill last year.

A model of a Neanderthal man on display at the National Museum of Prehistory in Dordogne, France
Richard Dawkins dedicated his book 'The Greatest Show on Earth' to Josh Timonen
newsThat's Richard Dawkins on babies with Down Syndrome
Arts and Entertainment
Eye of the beholder? 'Concrete lasagne' Preston bus station
architectureWhich monstrosities should be nominated for the Dead Prize?
ebooksAn evocation of the conflict through the eyes of those who lived through it
Dinosaurs Unleashed at the Eden Project
Arts and Entertainment
Life and Style
This month marks the 20th anniversary of the first online sale
techDespite a host of other online auction sites and fierce competition from Amazon, eBay is still the most popular e-commerce site in the UK
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Quantitative Analyst (Financial Services, Graduate, SQL, VBA)

£45000 per annum: Harrington Starr: Quantitative Analyst (Financial Services, ...

Application Support Engineer (C++, .NET, VB, Perl, Bash, SQL)

Negotiable: Harrington Starr: Application Support Engineer (C++, .NET, VB, Per...

AIFMD Business Analyst / Consultant - Investment Management

£450 - £600 per day: Harrington Starr: AIFMD Business Analyst / Consultant - I...

Business Analyst Solvency II SME (Pillar 1, 2 & 3) Insurance

£450 - £600 per day: Harrington Starr: Business Analyst Solvency II SME (Pilla...

Day In a Page

Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

We know all too much about the cruelty of Isis – but all too little about who they are

Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
Neanderthals lived alongside humans for centuries, latest study shows

Final resting place of our Neanderthal neighbours revealed

Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
Scottish independence: The new Scots who hold fate of the UK in their hands

The new Scots who hold fate of the UK in their hands

Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

Blight club: Britain's ugliest buildings

Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape
eBay's enduring appeal: Online auction site is still the UK's most popular e-commerce retailer

eBay's enduring appeal

The online auction site is still the UK's most popular e-commerce site
Culture Minister Ed Vaizey: ‘lack of ethnic minority and black faces on TV is weird’

'Lack of ethnic minority and black faces on TV is weird'

Culture Minister Ed Vaizey calls for immediate action to address the problem
Artist Olafur Eliasson's latest large-scale works are inspired by the paintings of JMW Turner

Magic circles: Artist Olafur Eliasson

Eliasson's works will go alongside a new exhibition of JMW Turner at Tate Britain. He tells Jay Merrick why the paintings of his hero are ripe for reinvention
Josephine Dickinson: 'A cochlear implant helped me to discover a new world of sound'

Josephine Dickinson: 'How I discovered a new world of sound'

After going deaf as a child, musician and poet Josephine Dickinson made do with a hearing aid for five decades. Then she had a cochlear implant - and everything changed
Greggs Google fail: Was the bakery's response to its logo mishap a stroke of marketing genius?

Greggs gives lesson in crisis management

After a mishap with their logo, high street staple Greggs went viral this week. But, as Simon Usborne discovers, their social media response was anything but half baked
Matthew McConaughey has been singing the praises of bumbags (shame he doesn't know how to wear one)

Matthew McConaughey sings the praises of bumbags

Shame he doesn't know how to wear one. Harriet Walker explains the dos and don'ts of fanny packs
7 best quadcopters and drones

Flying fun: 7 best quadcopters and drones

From state of the art devices with stabilised cameras to mini gadgets that can soar around the home, we take some flying objects for a spin
Joey Barton: ‘I’ve been guilty of getting a bit irate’

Joey Barton: ‘I’ve been guilty of getting a bit irate’

The midfielder returned to the Premier League after two years last weekend. The controversial character had much to discuss after his first game back
Andy Murray: I quit while I’m ahead too often

Andy Murray: I quit while I’m ahead too often

British No 1 knows his consistency as well as his fitness needs working on as he prepares for the US Open after a ‘very, very up and down’ year
Ferguson: In the heartlands of America, a descent into madness

A descent into madness in America's heartlands

David Usborne arrived in Ferguson, Missouri to be greeted by a scene more redolent of Gaza and Afghanistan
BBC’s filming of raid at Sir Cliff’s home ‘may be result of corruption’

BBC faces corruption allegation over its Sir Cliff police raid coverage

Reporter’s relationship with police under scrutiny as DG is summoned by MPs to explain extensive live broadcast of swoop on singer’s home