4 March 2015

Barclays chief executive Antony Jenkins has accepted the committee’s offer of a £1.1m bonus, taking his yearly earnings to £5.5m.

Last week we heard that the chief executive of Lloyds Banking Group, Antonio Horta-Osorio, is set to receive a total remuneration package of £11m; basic pay of £1m, an £800,000 bonus and the payout of a three-year long-term incentive plan, which gives him 535,083 shares. Lloyds was bailed out to the tune of £37bn by the taxpayer in 2008.

As we live in the aftermath of the financial crash that was caused by the bankers, here is yet more proof that it is everyone but them who suffers.

The cost of living is rising while real wages are falling or staying stagnant. Cuts and pay freezes are bringing most of the public sector to its knees, while those at the top of the banking industry are still enjoying outrageous pay rises and bonuses. Evidently, the sector has not seen enough reform.

Profits at Barclay’s have dropped by 21 percent after being hit by an array of fines; £1.1bn compensating those who were missold payment protection insurance by the bank, and £935m for the way loans for education, social housing and local authorities are valued.

“I completely understand that I am very well remunerated for what I do. But … I think it is appropriate that I accept my bonus,” said Jenkins. While Barclay’s bonus pool has dropped to 1.9bn, The bank acknowledges that this is due to top up payments being handed out to sidestep the EU bonus cap.

According to the bank, 359 people earned more than £1m, compared with 481 the year before. Three received more than £5m, including one who received around £10m. Meanwhile, 72,262 staff were paid £25,000 or less – likely to be branch staff as well as the 12,000 people the bank employs in India. Barclay’s shady employment practices have been highlighted in the past.

TUC General Secretary Frances O’Grady said:

“Profits have fallen at Barclay’s Bank and they have had to make huge provision for fines.

“The Chief Executive rightly recognises that the bank’s culture must change, but it is hard to have a positive view of any organisation that pays its boss £5.5 million in a single year – a sum that would take a full-time worker on the minimum wage 465 years to earn.”