Banking giant 'may defer bonuses'

Barclays is likely to defer bonuses to its highest earning staff
12 April 2012

Barclays is likely to defer paying bonuses to its highest earning staff in a bid to ease public anger about banking pay, sources for the bank have confirmed.

Directors and senior staff could have their bumper payouts postponed for up to three years.

The decision comes amid pressure on the industry in the wake of US plans for an overhaul of Wall Street.

Top executives will defer up to 100% of their bonuses for up to three years, while the next 2,000 or so staff will have levels of deferment of about 75%, the Financial Times reported.

The disclosure comes after London shares endured another difficult session on Friday as investors digested President Obama's plan to limit the activities of banks in the US.

Barclays, which last year acquired Lehman Brothers' North American trading and investment banking assets, was the biggest casualty as its shares fell another 4% on top of the 6% decline seen at Thursday's close.

Miners did their best to offset the banking pressure as the FTSE 100 Index stood 5.9 points higher at 5341.6 in morning trading.

The pressure on Barclays, which fell 9.2p to 273.65p, was compounded by continued rumours that it may need to tap shareholders for fresh capital.

Royal Bank of Scotland opened 4% lower but steadied as the session wore on to stand 0.2p lower at 35.1p. And Lloyds Banking Group, which has little exposure to the American banking sector, was 0.8p higher at 54.1p.

Barclays will publish exactly what bonuses are to be allocated in March.

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