Fidelity slams Barclays over £2.4bn payout
INVESTOR group Fidelity has become the first City firm to criticise Barclays’ £2.4bn bonus pool for 2013 – an increase of 10 per cent on the previous year, despite a 32 per cent drop in profits.
Fidelity’s global chief investment officer Dominic Rossi told Sky News last night: “It is disappointing that a year after making various commitments on pay, they have got themselves into a PR mess again.”
Rossi joins a growing list of critics, including the Institute of Directors, who have hit out at Barclays’ decision to hand out three times as much in bonuses to staff as it was handing out dividends to shareholders.
Last month Barclays chief executive Antony Jenkins excused the bank’s bonuses as it is competing in global markets and is therefore paying for the best talent. He reiterated the risks last week by warning that reduced bonuses could put the bank into a death spiral.
Some 481 Barclays workers received bonuses in excess of £1m last year as a result of the remuneration scheme.
Barclays is likely to face a difficult vote at its annual general meeting next month when shareholders vote on its remuneration report for 2013.