Pay down at Barclays despite rise in earnings

BARCLAYS’ results revealed yesterday that pay declined seven per cent in 2010, falling by more at its investment banking division Barclays Capital, by 12 per cent.

Overall, however, the bank’s compensation ratio of pay to revenues was up to 43 per cent, with average pay rising nearly £30,000 to £229,000.

Chief executive Bob Diamond blamed the rise on the payment of deferred bonuses, which are listed as costs during the year in which they vest.

He also confirmed plans to pay out a significant proportion of bonuses in contingent convertible bonds (or “cocos”) that turn into shares if the bank’s capital ratio falls too low.

Overall, the bank spent £2.6bn on bonuses at BarCap and £3.4bn on bonuses overall in 2010.