BOSS AT BARCLAYS BANK TURNS DOWN £2.7 MILLION BONUS – Anthony Jenkins, Barclays chief executive, the man that took over from Bob Diamond in the wake of the Libor rate rigging scandal, has turned down his £2.7 million annual bonus.
Mr. Jenkins decision is now the second year in a row that he’s turned down his annual bonus sighting a number of reasons including that the bank in 2013 faced ‘very significant costs’ over a number of scandals and therefore it wouldn’t be seen by the public or its customers as a responsible or indeed moral thing to do.
Mr. Jenkins does however still earn a considerable amount; currently his annual salary stands at £1.1 million and regardless of turning down his bonus two years in a row he will still be entitled for long-term incentives which will have no affect on his decision not to take his annual bonus.
To a degree I suspect Mr. Jenkins does have his finger on the pulse of the public and its customers sentiment by turning down the bonus.
Mr. Jenkins pointed out that Barclays is now in the process of rebuilding trust and working on improving the banks balance sheet.
Mention the word ‘Banker’ to most people and it inevitably conjures up images of crooks, thieves and liars whose greed and incompetency lead the public to be forcefully fleeced through a Government bailout.
How questionable are the banks activities after being bailed out? That brings us right back to the underhanded dealings by Bob Diamond and yet instead of facing trail for his part in the Libor rigging scandal he walked away from Barclays with millions.
In fact when Mr. Diamond was asked to leave he did so with a salary and bonus package of £18 million.
Is it any wonder why the public have no faith or trust in the banks and indeed the entire banking system?
Mr. Jenkins pointed out that large costs have been incurred during the last year as a result of the bank’s ‘Transform Plan’; a plan solely designed to restore public and customer faith and confidence in Barclays.
After being fined £290 million for the Libor rigging scandal plus other significant costs Barclays has announced that some 3,700 jobs were to be cut in order to save some £1.7 billion; Mr. Jenkins also announced to shareholders that it was making headway to further use technology which would see the workforce reduced further over the coming years.
There were some fears that Barclays would start to significantly reduce its network of high street branches but the bank has denied such a move.
Whilst many may see Mr. Jenkins refusal to accept his annual bonus as an admirable token I highly suspect such won’t have much of an impact regarding majority public and customer trust.
The measures Barclays are now taking under the stewardship of Mr. Jenkins may well please some shareholders but Barclays image, along with all the other banks, has been severely tainted and I doubt many people would trust their bankers any further than they could throw them.