Barclays' new pay deal: you don't get your bonus until you retire

Click to follow
The Independent Online

Barclays is pondering a radical new pay deal for its top executives as it seeks to rescue its battered reputation in the wake of a series of scandals that led to the ousting of the chief executive, Bob Diamond.

Under the plans, bonuses would be held in escrow for at least five years, and possibly in some cases until the executive retires.

The idea would be to take away the incentive for bankers to make short-term risky bets in the hope that they get lucky and hit the jackpot.

While details are still being worked out and are subject to change, it is thought that the chairman, Marcus Agius, is keen that the bank leads from the front on restructuring banker pay deals.

Rich Ricci, the head of the investment banking arm, has said recently that he agrees incentives for his staff need an overhaul.

Barclays is fighting fires on several fronts. It is being investigated by the Financial Services Authority over fees paid to the Qataris in 2008 as it was raising emergency funds, and remains under scrutiny for the Libor scandal, despite paying a £290m fine.

It is on the lookout for a chief executive to replace Mr Diamond, who was himself repeatedly criticised for the size of his pay packet.