Barclays boss pledges to slash bonuses

Barclays boss Antony Jenkins said he was "shredding" the legacy left by his predecessor Bob Diamond as he confirmed bonuses will be slashed following another £1bn (€1.15bn) provision to cover mis-selling scandals..

Barclays boss pledges to slash bonuses

Barclays boss Antony Jenkins said he was "shredding" the legacy left by his predecessor Bob Diamond as he confirmed bonuses will be slashed following another £1bn (€1.15bn) provision to cover mis-selling scandals.

Mr Jenkins, who took over as chief executive in August, told British MPs that he repeatedly raised concerns with the board and Mr Diamond over the culture at the bank and that "actions" were needed rather than words.

In a tense hearing with the British Parliamentary Commission on Banking Standards, Mr Jenkins assured MPs he was taking action to address the "aggressive" and "self-serving" culture under Mr Diamond.

He said the bonus pool for 2012 had already been "substantially" reduced following a scandal-hit year that saw the bank's reputation battered by the Libor rate-rigging affair.

The group added that today's hike in provisions for compensation for mis-selling of payment protection insurance (PPI) and interest rate swap products to small businesses had specifically resulted in a "material" cut to the bonus pot.

Barclays revealed earlier it was setting aside a further £600m (€693.8m) for redress to cover mis-sold payment protection insurance, taking the total to £2.6bn (€3bn).

The bank will increase its provision for interest rate swap compensation by £400m (€462.5m) to £850m (€982.9m) in the wake of the City watchdog's recent report on mis-selling of the complex financial products.

Mr Jenkins said last week he would waive his bonus for 2012 after a "very difficult" year for the bank.

Barclays has yet to reveal how much its overall 2012 bonus pool will be, but is expected to give details alongside the company's annual results next Tuesday.

More in this section

Lunchtime News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up

Discover the

Install our free app today

Available on

Revoiced
Newsletter

Our Covid-free newsletter brings together some of the best bits from irishexaminer.com, as chosen by our editor, direct to your inbox every Monday.

Sign up