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| Barclays says first quarter profits will be lower | |
| (about 3 hours later) | |
| Barclays says its first quarter profits will show a "small reduction" from a year earlier after a fall in revenues at part of its investment bank. | |
| The news comes as shareholders gather for the bank's annual general meeting in London 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. |
| 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. | |
| Pay restrictions | |
| Barclays said its investment bank's fixed-income operations had seen a "significant" reduction in income compared with a year earlier. | |
| Tougher regulations have made investment banking less profitable, and Barclays' competitors are also seeing income fall from their divisions. | |
| Barclays warned investors to expect a "small reduction" in underlying group profits compared with a year ago. The results are due on 6 May. | |
| The row over bonuses is expected to dominate at the annual general meeting, which is underway in London. | |
| 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. | |
| 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. |