A Few Bankers Are Not Receiving Bonuses This Year Due to Low Performance

Barclays is reportedly withholding bonuses for poorly performing investment bankers, a move that could lead to departures and exacerbate retention challenges. The cutbacks come after the bank experienced a slump in capital markets activity and are anticipated to result in more departures. Despite restructuring and pay cuts, Barclays’ stock has underperformed its competitors, with some attributing this to the bank’s overinflated investment banking arm.

Concerns have been raised about the bonus cuts leading to a larger exodus of employees, as the bank has struggled with retaining talent in the past. The firm has witnessed significant departures from its managing directors, sparked by a shake-up and pay cuts within the investment banking arm. Executives at Barclays fear that the bonus cutbacks could drive another mass exodus, with the head of the investment banking arm previously warning staff about excessive capital usage.

In addition to the bonus plans, Barclays received attention for its acquisition of the banking arm of British supermarket chain Tesco for around £600 million. This move marks another development for the bank as it navigates through its challenges related to bonuses and talent retention.

By Editor

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