Barclays Bank Doles Out Bonuses As Profits Dip And Jobs Cut


As Barclays PLC (NYSE:BCS) (LON:BARC) agrees to settle record fines for rigging markets,  and the firm’s litigation provisions increased 142% in 2013, it nonetheless found the courage to provide its 12 most senior executives $53 million (31.8 million pounds) in bonuses.

The American-born CEO of the UK bank, Hugh “Skip” McGee, received over $14.7 million as bank profits plummeted and the bank has plans to eliminate nearly 12,000 jobs.  The bank pretax profit in the fourth quarter of 2013 was $316 million (191 million pounds) versus $2.3 billion (1.4 billion pounds) in 2012.  McGee, a former Lehman Brothers executive, joined Barclays PLC (NYSE:BCS) (LON:BARC) in 2008 after Lehman Brothers Holdings Inc Plan Trust (OTCMKTS:LEHMQ) collapsed and Barclays bought certain US business units.

Barclays trimming headcount, unloading unprofitable business units

Barclays PLC (NYSE:BCS) (LON:BARC) is in a trimming mode, as the bank is planning on unloading unprofitable businesses and trimming staff, according to a Bloomberg report.

Ray Dalio At Robin Hood 2021: The Market Is Not In A Bubble

Fractional Shares Stock PickerAt this year's annual Robin Hood conference, which was held virtually, the founder of the world's largest hedge fund, Ray Dalio, talked about asset bubbles and how investors could detect as well as deal with bubbles in the marketplace. Q1 2021 hedge fund letters, conferences and more Dalio believes that by studying past market cycles Read More

The cost cutting, however, did not appear to impact recent bonuses.  Other notable bankers on the compensation list was investment bank co-head Eric Bommensath, pulling down a $14.2 million bonus (8.65 million pounds) in stock compensation.  Bommensath was followed by his investment bank co-head, Tom King, who was awarded $6.32 million (3.81 million pounds) and the bank’s Finance Director Tushar Morzaria, pulled down was $1.79 million (1.08 million pounds) in stock, according to the report.  Given its apparent girth given the situation, the 2014 bonus is still less than the $66.8 million (40.3 pounds) given to nine executives in 2013.

As reported in ValueWalk, previous bank chieftain Anthony Jenkins had refused his bonus in 2013 due to regulatory issues and litigation expenses.

Market manipulation investigation

Barclays PLC (NYSE:BCS) (LON:BARC) is part of a group of large banks being investigating with manipulating global currency markets, as reported last month in ValueWalk.  At that time we reported investigations into charges that senior dealers at large banks colluded to rig currency markets  are now “well-advanced” in “several jurisdictions” including the United States and Switzerland, the report noted.   According to Martin Wheatley, head of Britain’s financial regulator FCA, charges could be “every bit as bad” as the Libor interest rate-fixing scandal which cost banks $6 billion in fines.  The FCA investigation is expected to run parallel with a criminal investigation and could run into 2015.   In this case, chat room participants used names such as “The Cartel” and “The Bandits Club” to orchestrate their market trades.

Previous article Facebook Inc Now Linked To.. Eating Disorders
Next article Tesla Motors Inc (TSLA) Price Target Raised To $200 By Goldman
Mark Melin is an alternative investment practitioner whose specialty is recognizing a trading program’s strategy and mapping it to a market environment and performance driver. He provides analysis of managed futures investment performance and commentary regarding related managed futures market environment. A portfolio and industry consultant, he was an adjunct instructor in managed futures at Northwestern University / Chicago and has written or edited three books, including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008). Mark was director of the managed futures division at Alaron Trading until they were acquired by Peregrine Financial Group in 2009, where he was a registered associated person (National Futures Association NFA ID#: 0348336). Mark has also worked as a Commodity Trading Advisor himself, trading a short volatility options portfolio across the yield curve, and was an independent consultant to various broker dealers and futures exchanges, including OneChicago, the single stock futures exchange, and the Chicago Board of Trade. He is also Editor, Opalesque Futures Intelligence and Editor, Opalesque Futures Strategies. - Contact: Mmelin(at)

No posts to display