BARCLAYS has become the latest financial giant to allow top bankers the chance to earn eye-watering bonuses as part of a post-Brexit bonanza for fat cats.
The London-based bank has changed its pay policy to allow senior bankers working outside of the EU the chance to earn up to 10 times their base salary in bonuses.
The move will include the UK bank, after financial regulators last year decided to remove a cap that limited the amount bankers could take home in annual payments.
The post-Brexit decision meant UK banks no longer had to follow EU rules.
It is a politically contentious issue, with Labour having faced criticism for refusing to reinstate the cap which was brought in in the aftermath of the financial crash.
Barclays expects some 1600 employees globally to be affected by the change, known as its “material risk-takers”.
Those members of staff will be able to earn up to 10 times their fixed salary in variable pay, which includes bonuses. Previously, the cap was set at twice the level of fixed pay.
The bank said the change will help attract new employees by offering the chance to take home bumper bonuses.
It brings Barclays in line with policies at JP Morgan and Goldman Sachs, as financial giants vie to attract new employees with generous remuneration policies.
A spokesman for Barclays said: “The revised bonus cap will not alter the way Barclays sets its incentive pool, which is based on overall group performance.
“It will allow us greater flexibility to differentiate individual bonuses within a small and defined group of colleagues, enabling Barclays to continue to compete effectively to retain and attract the best talent globally.”
The incentive pool refers to the total amount set aside for performance-based pay such as bonuses.
In a memo sent to staff, the bank said the new bonus cap “should not change colleague expectations around total compensation”, which will not automatically increase.
Staff affected by the change will also not see their salaries cut as a result.
“Material risk-takers” within the EU, incorporating Ireland, will continue to have bonuses capped at twice their salary.
