Barclays embarks on culture overhaul
(8 August 2012 – United Kingdom) Barclays has several proposals on the table for the board to consider to overhaul the banks culture and restore its reputation after damage done by chief executive Bob Diamond's bumper bonuses and the Libor scandal.
Proposals include bonus reforms that could see staff having to wait until they retire to collect their awards.
HSBC has already adopted the plan, which sees bonuses awarded in shares, rolled up annually and collected when staff leave.
Investors like the arrangement because it ensures bankers behave in the best long-term interests of the company, although there have been concerns about the size of the awards.
Barclays insiders confirmed that the proposal was being examined, in recognition of shareholders' approval for the structure.
Barclays overhauled its performance targets but more than a quarter of investors still voted against the remuneration report at the annual meeting. Following the outcry, the board said it would review its bonus structures.
Barclays' bonus reforms will be key to restoring its reputation. Regulators described Barclays under Diamond as a bank that ''sailed too close to the wind'' and was ''in denial'' about its cultural problems.
HSBC has already adopted the plan, which sees bonuses awarded in shares, rolled up annually and collected when staff leave.
Investors like the arrangement because it ensures bankers behave in the best long-term interests of the company, although there have been concerns about the size of the awards.
Barclays insiders confirmed that the proposal was being examined, in recognition of shareholders' approval for the structure.
Barclays overhauled its performance targets but more than a quarter of investors still voted against the remuneration report at the annual meeting. Following the outcry, the board said it would review its bonus structures.
Barclays' bonus reforms will be key to restoring its reputation. Regulators described Barclays under Diamond as a bank that ''sailed too close to the wind'' and was ''in denial'' about its cultural problems.
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