Barclays PLC (LSE:BARC) is proposing a new pay package for its chief executive CS Venkatakrishnan that could see his remuneration jump by 45% compared to his current scheme.
The bank said the proposal will link the CEO’s pay more to bonuses and performance than previously, with his fixed salary to be halved to £1.59 million from £2.95 million under the new arrangement.
Under the new scheme, which will also include a similar arrangement for Anna Cross, the bank’s finance director, CS Venkatakrishnan will be eligible for bonuses and share awards worth up to eight times his new fixed salary with his total annual remuneration capped at £14.3 million.
Cross’s maximum annual pay package rises to £8.1million under the new scheme.
The plans, which were revealed by Sky News, will be put to shareholders at the bank’s annual general meeting and follows the ending of the two-times cap on bank bonuses set down while the UK was still in the EU.
Barclays scrapped the cap on its most important staff last year introducing a new level of up to ten times salary for its biggest earners.
Brian Gilvary, chair of Barclays' remuneration committee, said the changes would "simplify the structure of executive director pay "and "align the outcomes more closely to the performance of our business and the experience of our shareholders".
It would also recognise that “Barclays competes with a broad range of peer banks, including the leading US universal and investment banks".
If the scheme had been in place in 2024 and after a good year the bank, Venkatakrishnan would receive a pay package worth £9.2 million or slightly less than the maximum of £9.8 million payable under the existing scheme.
To meet the maximum payment under the scheme would require a material jump in the bank’s profitability, said the report.
In a statement issued to Sky News, a Barclays spokesperson said: "The remuneration committee meets with stakeholders throughout the year to gather feedback on our remuneration policy.
"Whether or not the committee chooses to propose any change to our current Directors' Remuneration Policy in 2025, the policy will continue to focus on rewarding sustainable performance, and close alignment with shareholders' interests.
"The committee will publish their views and decisions in the 2024 annual report on 13 Feb."