Barclays top bankers will benefit from an additional “role-based” pay allowance on top of their salaries and bonuses.
The move comes in the wake of the EU’s plans to cap bonuses at 100 per cent or salaries or 200 per cent if a “super majority” of shareholders approve. The bank is planning to seek this approval.
Role-based pay will be set at the beginning of the year, and will be paid in 12 instalments. It is not performance-linked, but the amount to be paid will be changeable based on economic conditions and Barclays’ forecasts.
It is understood that regulators and shareholders have been consulted. Sources close to the bank said it was not an attempt to evade the cap because “role-based pay” is not performance-linked or retrospective.
The Government has launched a challenge to the cap, which comes into force next year. However, that will not be ruled upon in time to stop it.
Other banks are expected to use similar payments to reward top staff. It is likely the allowance will be handed to fewer than 2000 staff at Barclays.