Barclays to dodge new EU bonus rules

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Pretty much everyone’s vote for the least ethical bank in the world, Barclays Bank, will give its top directors additional shares as part of a revamped scheme designed to dodge new European Union caps on bonuses.

Senior executives are likely to receive shares, alongside their salaries and benefits.

The new rules came into force last week, and limit bonuses to the same amount as annual salaries or to twice the size if shareholders approve. Recent data from European banking regulators (if we even believe in that term anymore- Haze) showed average bonuses for top-paid staff in the City were nearly four times their bonuses. George Osborne is opposed to the bonus cap. (gosh! – Haze)

In a memo to staff in its investment bank in November, Barclays said:

“For those employees who will be affected in 2014, Barclays will introduce a new non-pensionable class of fixed pay, called role-based pay, with effect from 1 January 2014. It will be paid in cash at the same time, and in addition to, salary and any additional fixed payment.” It will typically be reviewed and set annually, at the start of the year, “and may be adjusted up or down”.

The Haze says…

What this tells us is that Barclays and all the other banks will glide effortlessly around ineffectual rules that were supposed to prevent reckless risks being rewarded with big bonuses (leaving good ole taxpayer who doesn’t get a bonus to pick up the tab when it inevitably goes tits up at some point)

This was supposed to be the one thing that was going to change as a result of the Global Financial Crisis and now even this won’t change.

Small wonder then that the same people (bankers) are back in the same casino (property / derivaties) playing the same games (asset bubbles / CDO’s) for the same rewards (lovely new bonuses).

Doubtless someone out there is expecting some kind of different outcome but the Haze awaits the next financial crash with a sense of weary inevitability.

I have a hunch that that somehow it will all be blamed on the poor in the end.