While tens of millions of football fans will be focused on the Barclays Premiership clash between title rivals Chelsea and Manchester City in the coming minutes, additional news came from Barclays PLC (ADR) (NYSE:BCS)’s chief executive Antony Jenkins earlier today.
Jenkins said earlier today that he will be declining his bonus for 2013 due to the bank’s struggles with both restructuring costs and the cost incurred by litigation.
Jenkins believes Barlcays is on the right path
While Jenkins believes that Barclays PLC (ADR) (NYSE:BCS) (LON:BARC) is back on track and doing a lot to regain the public’s trust, he made it clear that the bank has loads to do yet in order to be looked on favorably by both the British people and internationally. Barclay’s paid out “very significant costs” last year to deal with litigation as well as conduct issues and still faces struggles as it sheds certain business lines.
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“When combined with the substantial rights issue we completed in the autumn, I have concluded that it would not be right, in the circumstances, for me to accept a bonus for 2013, and I have therefore respectfully declined the one offered to me by the board,” Jenkins said in a statement on Monday.
While no number was given, Jenkins could have received a bonus reaching as high as £2.75 million. While this is refreshing, Mr. Jenkins will still receive a base salary of £1.1 million. This is the second consecutive year that Jenkins has declined his bonus.
Last year, Jenkins could certainly have been forgiven had he accepted his bonus. Jenkins only took the top job after the bank was left dealing with the participation by its employees in a scheme to manipulate the London interbank offered rate, or Libor.
Barclays PLC (ADR) (NYSE:BCS) (LON:BARC), along with four others, paid out over $3 billion to regulators in Britain and the United States for their role in the rate rigging scandal which occurred before Jenkins took the helm.
Barclays to cut costs
The bank announced last year that it would shed no less than 3,700 jobs this year including 1,800 in its corporate and investment banking businesses. Additionally, the bank is planning to cut costs by no less than $2.8 billion by the end of this calender year.
According to sources close to the matter, it’s believed that Barclays PLC (ADR) (NYSE:BCS) will cut even more from its investment bank. The New York Times is reporting that 400 additional jobs will be cut. The bank will still employ nearly 150,000 worldwide.
Barclays PLC (ADR) (NYSE:BCS) (LON:BARC) will report its fourth-quarter results next week on February 11. The bank announced last week that its fourth-quarter results would include additional charges of £110 million against income in its investment bank related to litigation and regulatory penalties