According to the Financial Times, Barclays wants to slash costs at its underperforming investment bank through pay cuts for bankers.
Annual bonuses are set to be more closely tied to performance, meaning accrual in the first quarter is expected to be down by double digits compared with last year, the newspaper said.
The bank is also said to be planning to crack down on promotions for its bankers. Last year, 85 bankers were promoted in Barclays International, compared to 74 in 2017.
The news comes as activist investor Edward Bramson, whose vehicle Sherborne Investors owns about 5.5% of Barclays, piles pressure on the bank to improve shareholder returns by shrinking the investment unit.
Bramson has called on shareholders to back his campaign to be elected as a non-executive director on the bank’s board at the annual general meeting on May 2.
However, leading shareholder advisory group, Glass Lewis, has told investors to oppose his bid for a seat on the board.
Merian Global Investors’ Richard Buxton, a leading investor in Barclays, said it would vote against Bramson’s proposal.
In afternoon trading, shares in Barclays - which reports its first-quarter results on Thursday - were 2.2% lower at 165.76p.
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