Antony Jenkins said he was proud of the progress made in overhauling the bank’s reputation Photo: Reuters
Note from Stephen Cook: Whether this is a PR stunt, a sign to get bank workers to like him or a genuinely sincere move – no matter the extent or the amount – for a CEO in the banking industry, it is nevertheless refreshing to see. In fact it is what every bank chief should be doing.
By Harry Wilson, February 3, 2014 | Thanks to Golden Age of Gaia.
Antony Jenkins, chief executive of Barclays, has turned down an annual bonus that could have been worth as much as £2.7m (US$4.4m), saying it “would not be right” to accept the award.
In a statement to the market, Mr Jenkins said he had “respectfully declined” an unspecified bonus awarded to him by the bank’s board.
“I am aware of the very significant costs which have been required to address legacy litigation and conduct issues in 2013, as well as to exit assets and businesses we no longer wish to participate in,” said Mr Jenkins.
He added: “When combined with the substantial rights issue we completed in the autumn, I have concluded that it would not be right, in the circumstances, for me to accept a bonus for 2013.”
This marks the second year in a row that Mr Jenkins has turned down an annual bonus amid the climbing costs of dealing with the bank’s legacy problems, such as Libor, interest rate swap mis-selling, and payment protection insurance.
Under the terms of his contract, Mr Jenkins, who took over as chief executive of Barclays in 2012 in the wake of the Libor-rigging scandal, is entitled to a bonus worth 250pc of his £1.1m salary, or £2.7m.
However, while he will not be taking his annual bonus, Mr Jenkins could receive shares worth about £4m next month as part of his long-term incentive scheme.
New European Union rules are set to cap bonus payments to senior bankers at 100pc of salary, rising to 200pc with the permission of shareholders.
However, banks are exploring loopholes in the law that will allow them to make role-specific monthly payments to staff that could see them continue to receive large payouts.
The EU rules also contain get-out clauses that will allow banks to apply to the authorities for individual exemptons.
Royal Bank of Scotland, which is 81pc owned by the state, sparked criticism last month after it was reported it would ask for permission to pay 200pc bonuses.
Openhearted Rebellion 