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Barclays chief rules out £1m bonus as ‘wrong’ after Libor scandal

Barclays chief executive Antony Jenkins is to waive his bonus for 2012 after a “very difficult” year for the scandal-hit bank.

Mr Jenkins, who took on his role in August, said it was “only right that I bear an appropriate degree of accountability” following a year of devastating blows to the group’s reputation, including a £290m settlement for Libor rate rigging.

Reports had said Barclays was preparing to pay Mr Jenkins a bonus worth at least £1m. The maximum he was entitled to was £2.75 m – 250 per cent of his £1.1m salary.

Mr Jenkins said it would be “wrong for me to receive a bonus for 2012” after the bank had been knocked by “multiple issues of our own making”.

It is still unclear how much the bank is planning to hand out in bonuses to its wider workforce.

His decision could set the tone for the forthcoming bonus season.

Royal Bank of Scotland boss Stephen Hester has already waived his entitlement to a bonus for 2012, which he announced amid the bailed-out bank’s computer meltdown last summer, but there is controversy building over potential payments to bosses at fellow banks.

When asked about Mr Jenkins’s decision, a Downing Street spokeswoman said: “We still have a very clear line that any such bonuses should follow a policy of restraint and should reflect good performance. That applies to bonuses across the board.”

Mr Jenkins replaced Bob Diamond, who resigned over the Libor affair, and is leading a campaign to repair the bank’s battered image and overhaul its culture, blamed for recent scandals.

 

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