On Jan 23, British lender Barclays is reportedly proposing a restructuring of compensation for its CEO and finance director. As per a Sky News report, the plan includes offering higher bonuses for superior performance in exchange for reduced fixed pay.
In a letter to investors, Barclays suggests setting a maximum cap on CEO CS Venkatakrishnan's potential earnings at slightly over 14 million pounds ($17.3 million), up from 9.9 million pounds in 2023. The proposal entails decreasing the CEO's yearly fixed pay from approximately 3 million pounds in 2023 to 1.6 million pounds.
Barclays avoided sharing the shareholder letter with Reuters. A company spokesperson mentioned, Whether or not the remuneration committee chooses to propose any change to our current Directors’ Remuneration Policy in 2025, the policy will continue to focus on rewarding sustainable performance, and close alignment with shareholders’ interests.
The revised compensation structure, subject to shareholder approval at the upcoming annual general meeting, would enable Venkatakrishnan to qualify for bonuses and long-term stock incentives of up to eight times his new fixed pay, according to Sky News.
The committee intends to outline their perspectives and determinations in the 2024 Annual Report on Feb. 13, the spokesperson informed Reuters.
Venkatakrishnan, in charge since 2021, may reach the upper limit of his remuneration package if the bank achieves a return on tangible equity surpassing 14%. Barclays reported an 11.5% return on tangible equity for the first nine months of 2024 in its third-quarter results, aiming for over 10% for the full year 2024 and over 12% in 2026.
(Conversion rate: $1 = 0.8097 pounds)