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Barclays is proposing to slash the fixed pay it hands to its chief executive each year as part of an overhaul of his remuneration package that will see his maximum earnings capped at just over £14m.
Sky News has learnt that Barclays has this week written to its largest shareholders to notify them of detailed proposals that will change the way it pays CEO CS Venkatakrishnan and group finance director Anna Cross.
Under the plans, which will be put to investors at the bank’s annual meeting in the spring, Mr Venkatakrishnan will see his annual fixed pay – comprising salary and a share allowance – nearly halved from £2.95m to £1.59m.
His new arrangements would, if approved by shareholders, see him become eligible for bonuses and long-term stock awards worth up to eight times his new £1.59m salary.
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That would mean Mr Venkatakrishnan’s total maximum package increasing from £9.8m to £14.3m, although people briefed on the plans said he could only earn rewards at the upper end of the spectrum if Barclays achieved a return on tangible equity in excess of 14% – a level well beyond the targets the bank has said it is aiming for.
Ms Cross, meanwhile, would see her maximum pay package rise to £8.1m.
The new arrangements will mean that Barclays asks shareholders to vote on its directors’ remuneration policy (DRP) a year earlier than it is required to.
Its move follows the government’s decision to abolish the pre-Brexit cap which restricted senior bankers from earning more than twice their fixed pay in bonuses and other variable awards.
Last year, Barclays investors voted overwhelmingly to allow the company to set its own bonus cap.
For hundreds of so-called material risk-takers (MRTs) at the UK-headquartered bank, that ratio has been set at 10:1, meaning a banker earning £1m in fixed pay could be awarded a maximum of £10m in bonuses.
Other leading investment banks, including Goldman…
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