Barclays 'planning to pay investment staff $8.9bn'

7 December 2011

Barclays is planning to ignore calls for restraint surrounding pay awards this year, a news report has suggested.

According to the Sunday Times, the major British financier expects to hand out some £5 billion ($8.9 billion) in salary and bonus payments to its 24,100 staff working in its investment branch Barclays Capital for 2011.

This represents an average remuneration package of £210,000 for these professionals - a figure that is likely to come under scrutiny after Mervyn King, governor of the Bank of England (BoE), recently urged lenders to limit their pay awards.

Mr King indicated that reducing bonuses and salaries would help banks maintain sufficiently high levels of capital to make sure they are protected from any potential future monetary shocks.

This comes after Andrew Haldane of the BoE noted in the Financial Times that banks such as Barclays have to pay more money to raise worthwhile capital in traditional bond markets.

By Claire Archer

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