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Barclays increases bonus pool size by 45% as COVID restrictions recede

Barclays increases bonus pool size by 45% as COVID restrictions recede

British multinational universal bank, Barclays, has reportedly expanded the size of its bonus pool by 45%, with best performers in line for a total payout of over £1 billion. The move comes after a rebound in profits owing to improvements in economic conditions and the easing of COVID restrictions.

The details were set out to the London Stock Exchange in an update. The bank stated that it had ringfenced the amount, that covers merely the first six months of the year, for compensating its star performers in the next spring, which is the typical period of payouts.

For the first half of 2021, Barclays put aside a value of almost £1.1 billion, which is up from a revenue of £785 million that was set aside in 2020. The final size of the bonus pool is also set to comprise payouts for executives, inclusive of Jes Staley, the Chief Executive, who was given a bonus amount of £843,000 the previous year. According to Staley, Barclays was being “prudent” in the manner it took care of bonuses as it linked payouts to the profitability of the bank.

As per sources, Barclays did not state the number of employees that will share in the pool, that has been reserved for the best performers. The pool has nearly 83,000 staff at the global level, of which 448 employees earned over £1 million in total pay the previous year.

Further, employees have another period of six months for building up their final pot of bonus for 2021, which is anticipated to blow beyond the £1.6 billion that was paid out for the entire 2020 when the United Kingdom was in the midst of the COVID-19 pandemic.

With regards to the performance of Barclays’ investment banking division, Staley stated that Barclay’s compensation to income ratio is one of the lowest in the industry. Therefore, the company thinks that it is being wise in the management of that variable compensation, added Staley.

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