Barclays chose to announce its £38.5m executive bonuses on the same day that the City posted its budget report. The bank has since then been accused of attempting to bury the news that it gave its top bankers £29.5m in bonus pay by choosing a news day when they knew the focus would be elsewhere.
Following the Libel-rigging scandal, promised that it was ‘changing’ its ways after receiving a very pricy £290m fine last year, but it has just given £17.6m in shares to head of its investment banking division Rich Ricci who promptly cashed in the shares for money.
The new influx of tax will help pad Ricci’s pocket so much that the taxman will be able to take £9.3m from his bonus paycheck. However, due to new budget day tax changes made in the last few months now Ricci will be able to take home an additional £27,000 from his net salary of £700,000.
His bonus alone is worth about 656 times more than the average salary in the UK, but his payday on Wednesday looks like nothing in the face of the £44m that he received in bonuses and pay back in 2010.
Antony Jenkins, the chief executive of Barclays, called for bankers’ bonuses to be lessened just last month, but yet he was given 1.8 shares that were valued at about £5.3m. He promptly cashed in about half of the shares. The remaining £16.7m was disbursed between seven more top bankers.
The bonuses were a surprise given the fact that Barclays clearly stated that Jenkins and Ricci would not be given a bonus for this year due to the Libor scandal. Labour MP John Mann stated that the bonuses are very greedy when you consider how many people suffered as a result of the Libor scandal.