This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-27137764
The article has changed 5 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Barclays sees key shareholder vote against pay policy | |
| (about 2 hours later) | |
| Standard Life Investments, a key institutional shareholder, has voted against Barclays' plan to award higher bonuses despite a 30% fall in profits. | |
| Barclays shareholders are voting on the proposals at the bank's annual general meeting amid rising anger over its plans to pay higher bonuses. | |
| Despite growing political and public opposition, the bank plans to increase its staff bonus pool by 10% to £2.38bn. | Despite growing political and public opposition, the bank plans to increase its staff bonus pool by 10% to £2.38bn. |
| Barclays on Thursday said first quarter profits would be lower this year. | |
| In February, Barclays announced a 30% fall in annual profits and job cuts. | In February, Barclays announced a 30% fall in annual profits and job cuts. |
| The bank said its cost-cutting programme was starting to show a "material benefit" and would help to offset the downturn in investment banking. | The bank said its cost-cutting programme was starting to show a "material benefit" and would help to offset the downturn in investment banking. |
| The issue of bonuses is dominating the meeting at London's Royal Festival Hall. | |
| Alison Kennedy, a governance and stewardship director at Standard Life Investments, said the firm would vote against approving the remuneration report: "We appreciate that there were competitive pressures during 2013 [chiefly in investment banking]... and that the board was seeking to protect a business franchise under threat. " | |
| She said that Standard Life Investments were unconvinced that the amount of the 2013 bonus pool was in the best interests of shareholders, and that they also believe that this decision has had "negative repercussions on the bank's reputation". | |
| Pay restrictions | Pay restrictions |
| Barclays said its investment bank's fixed-income operations had seen a "significant" reduction in income compared with a year earlier. | Barclays said its investment bank's fixed-income operations had seen a "significant" reduction in income compared with a year earlier. |
| The results are due on 6 May. | |
| Tougher regulations have made investment banking less profitable, and Barclays' competitors are also seeing income fall from their divisions. | Tougher regulations have made investment banking less profitable, and Barclays' competitors are also seeing income fall from their divisions. |
| Also on Thursday, the Financial Reporting Council said all companies, not just banks, should be able to claw back bonuses if targets are missed. | Also on Thursday, the Financial Reporting Council said all companies, not just banks, should be able to claw back bonuses if targets are missed. |
| Earlier this week the Business Secretary, Vince Cable, wrote to the UK's top 100 companies warning them to keep a lid on executive pay. | Earlier this week the Business Secretary, Vince Cable, wrote to the UK's top 100 companies warning them to keep a lid on executive pay. |
| Banks have restrictions on executive bonuses, brought in by the European Union. They require most of the bonus to be deferred for several years, and part of that to be in shares, which can be taken back if it emerges the company's performance was worse than thought. | Banks have restrictions on executive bonuses, brought in by the European Union. They require most of the bonus to be deferred for several years, and part of that to be in shares, which can be taken back if it emerges the company's performance was worse than thought. |
| Criticism | Criticism |
| The shareholder activist group, Pirc, has recommended that members vote against five resolutions at the meeting, including the remuneration report. | The shareholder activist group, Pirc, has recommended that members vote against five resolutions at the meeting, including the remuneration report. |
| Pirc is also against the plan for Barclays' chief executive, Antony Jenkins, to receive up to £1m in shares as well as his salary and bonuses. | Pirc is also against the plan for Barclays' chief executive, Antony Jenkins, to receive up to £1m in shares as well as his salary and bonuses. |
| The bank's pay policy has also been criticised by the Institute of Directors, which pointed out the 2013 bonus pool for 2013 was nearly three times the size of the £859m allotted as dividends for shareholders. | The bank's pay policy has also been criticised by the Institute of Directors, which pointed out the 2013 bonus pool for 2013 was nearly three times the size of the £859m allotted as dividends for shareholders. |
| The bank argues that these levels of pay are necessary in order to keep the best people working for it. | The bank argues that these levels of pay are necessary in order to keep the best people working for it. |