Senior investment bankers at Barclays are set to see their pay reduced by up to 50 per cent in the near future, it has emerged.
The major British lender remains determined to cut costs further and offer proof it has fundamentally changed in the aftermath of the global financial crisis - and has earmarked investment bankers' wages as one area it can save money, the Sunday Telegraph reported yesterday (28 October).
According to the news source, those professionals who currently receive between £500,000 ($802,000) and £3 million annually will experience wage remuneration reductions of around 30 or 40 per cent.
Later this week, Barclays will publish its third-quarter results and analysts expect it to post a pre-tax profit of £1.7 billion.
However, due to ongoing issues such as payment protection insurance compensation payments, the bank is likely to still be in the red for the three-month timeframe, meaning further cost-cutting measures are needed.
One investor commented: "They've certainly been paying their staff very aggressively in the past and now it's time to balance that."
By Tony Aynsley