Barclays has frozen £22 million of bonus share awards made to former boss Jes Staley amid an investigation into his relationship with disgraced financier and convicted intercourse offender Jeffrey Epstein.
The banking large’s annual report revealed it has suspended Mr Staley’s unvested long-term bonus share awards pending the regulatory probe.
It mentioned virtually 70 per cent of the long-term incentive scheme share awards granted since he was appointed in 2015 stay unvested – totalling 11.2 million shares value round £22 million at present market costs.
Mr Staley stepped down final November to contest findings by the Monetary Conduct Authority and Prudential Regulation Authority over the way in which he represented his relationship with Epstein to the financial institution.
The findings of the investigation haven’t but been made public.
He nonetheless receives his contractual entitlement to £2.4 million in money and shares – the equal of 12 months in fastened pay – in addition to a pension allowance and different undisclosed advantages.
The financial institution mentioned: “Consistent with its regular procedures, the committee exercised its discretion to droop the vesting of all of Mr Staley’s unvested awards, pending additional developments in respect of the regulatory and authorized proceedings associated to the continuing Monetary Conduct Authority and Prudential Regulatory Authority investigation relating to Mr Staley.”
It got here as Barclays revealed that pre-tax income soared to £8.4 billion in 2021 after it launched money put aside for pandemic mortgage losses and notched up document funding banking earnings.
The lender greater than doubled income from £3.1 billion in 2020 because of the discharge of £653 million in unhealthy debt provisions, in contrast with £4.8 billion put aside for Covid mortgage losses the earlier yr.
I’m proud that now we have delivered this resilient efficiency whereas persevering with to help our purchasers and clients by one other yr of Covid-19 associated challenges
CS Venkatakrishnan, chief govt
The higher-than-expected outcomes additionally confirmed that the group’s company and funding banking division recorded its highest-ever pre-tax income of £5.8 billion over the yr, up from £4 billion in 2020.
Its annual report confirmed Barclays elevated its bonus pot for workers to £1.9 billion, up from £1.6 billion in 2020.
Barclays provided cheer for traders in addition to it mentioned it will purchase again £1 billion of its personal shares and improve its full-year dividend to 4p a share, serving to the financial institution’s shares raise 3 per cent.
The group additionally introduced its first feminine finance director, appointing deputy group finance director Anna Cross to the function from April 23.
She’s going to succeed Tushar Morzaria, who’s retiring after greater than eight years within the publish and turns into the primary lady to carry one of many prime three boardroom jobs on the financial institution.
The ex-CEO’s reward freeze shall be a welcome token for these disheartened by the continuing probe into his conduct
Sophie Lund-Yates, from Hargreaves Lansdown
The figures come after a troublesome yr for the financial institution, with new chief govt CS Venkatakrishnan thrown into the function final November after Mr Staley’s shock resignation.
Mr Venkatakrishnan, often called Venkat, mentioned: “I’m proud that now we have delivered this resilient efficiency whereas persevering with to help our purchasers and clients by one other yr of Covid-19 associated challenges.”
He added: “We recognise that the financial surroundings is greater than normally unsure, with rising inflation charges and tighter financial coverage, whereas many components of society proceed to recuperate from the extreme social and financial results of the Covid-19 pandemic.”
The group added it had “restricted” buying and selling publicity to Russia because the disaster with Ukraine continues to mount, having exited the nation a few years in the past.
Sophie Lund-Yates, lead fairness analyst at Hargreaves Lansdown, mentioned: “The ex-CEO’s reward freeze shall be a welcome token for these disheartened by the continuing probe into his conduct.
“Nonetheless, shareholders are going through no such freeze, with an additional £1 billion buyback introduced, because the improved macro-economic outlook allowed for an unlimited reversal in impairment expenses.”
Kaynak: briturkish.com
