Barclays doubled the CEO’s salary to PS10.5m, while its top performers shared a bonus pot worth PS1.9bn.
After revealing an increase in profits before tax in 2024, the high-street lending company will also award shares worth PS500 each to 90,000.
According to the firm’s accounts, CS Venkatakrishnan was awarded PS4.64m by 2023. This means that his pay increased by 127%, as the company’s total income soared last year from PS1.5bn up to PS26.8bn.
In the company’s report, it was revealed that his earnings were a result of long-term bonuses as well as a rise in Barclays shares. Shareholders will vote this year on reducing the CEO’s base salary, while allowing him earn more than PS14m per annum through bonuses.
Venkatakrishnan stated: “In 2024, we achieved our financial targets and delivered for our clients and customers, with improved operational and financial performance driven by the disciplined execution of our three-year plan.”
The CEO’s pay package was 182x larger than the PS57.854 median salary for Barclays UK staff, compared to 82x the median wage the previous year. Barclays attributed this significant increase to the vesting long-term incentives payments (LTIPs).
Venkatakrishnan received a PS2.935m base salary, a PS2.219m LTIP payment and a PS5.219m bonus. In addition, he was paid a PS147,000 pension boost and received tax-deductible benefits such as private medical insurance, life insurance and income protection. He also received a PS95,000 company vehicle and driver.
As part of a new pay structure, this year his salary will be reduced to 1.59m PS.
The bank’s remuneration panel expressed satisfaction in the report that the 2024 compensation for the chief executive of the group, as well the total and fixed pay results for UK employees, aligned with the group’s philosophy on remuneration and reflected stakeholder experiences.
Venkatakrishnan commented on the share awards: “To align their effort fully with our shareholder’s interests, our co-workers need to be able to share in the final outcome of their work – the increase in our share prices. We are therefore announcing that we will be awarding PS500 worth of shares to the majority of our employees – basically all of them, regardless of location, with the exception of managing directors and those who take on material risks.
“I’ve long believed that equity participation between employees and shareholders strengthens the business. In the UK, share ownership is sadly on the decline. This is our attempt to arrest and correct this trend.
Barclays has reported a profit before tax of PS8.1bn in 2024. This is a 24% rise from the PS6.6bn it made in 2023.
