Unbelievable! A £15 million pay package for Barclays' boss, and the bank's profits are booming. But here's the kicker: this massive reward comes at a time when the bank's workers are getting a fraction of that in salary increases.
Barclays' CEO, whose name is Venkat, saw his compensation surge by a whopping 29% last year, pushing his total package to just over £15 million. That's 248 times more than the median pay for Barclays' employees, and it's believed to be the biggest CEO payout since Bob Diamond's £17 million in 2011.
The reason for this massive increase? Long-term performance-related share awards that matured in 2025, resulting in a huge profit. These awards, known as LTIPS, were valued at £9.45 million, a significant jump from the previous year's £6.23 million.
Now, here's where it gets controversial. While Venkat's annual bonus increased to £3.3 million, his base salary took a hit, dropping to £2.06 million due to a change in pay policy for senior management. This change came after the Labour government removed caps on banker bonuses, which were initially put in place after the financial crisis.
Venkat, 60, took the reins in November 2021, stepping into the role previously held by Jes Staley, who resigned following an FCA investigation into his relationship with Jeffrey Epstein.
And it's not just Venkat who's raking in the rewards. Anna Cross, the Chief Financial Officer, saw her pay and bonus package almost triple, reaching £8.97 million, thanks to LTIPs worth £5.61 million.
The financial documents released today paint a picture of growing profits for Barclays. The bank reported a 13% increase in annual pre-tax profits, reaching £9.1 billion, with a 12% surge in the final quarter's surplus to £1.86 billion. These figures exceeded expectations, outperforming the City's forecasts of £9 billion and £1.7 billion, respectively.
Barclays is aiming for even higher returns in the coming years, targeting a return on tangible equity of over 14% by 2028. They also plan to distribute at least £15 billion to shareholders between 2026 and 2028.
For 2025, the bank announced total capital distributions of £3.7 billion, a 23% increase from the previous year. This includes a £1.2 billion dividend of 8.6p per share, a 2% increase, and plans for a full-year award of 5.6p. Additionally, the bank intends to buy back £1 billion worth of shares.
And this is the part most people miss: while the bank's top brass are enjoying these massive rewards, UK shop floor staff, represented by the Unite union, are offered a mere 4% salary increase for junior employees and a 3.2% overall increase.
So, what do you think? Is this a fair distribution of wealth, or does it raise concerns about income inequality? I'd love to hear your thoughts in the comments below!
