CS Venkatakrishnan, the chief executive of Barclays, could see his maximum pay increase by 45% under a proposed overhaul currently under consideration by the bank’s board. The plan would reduce his fixed salary by almost half, from £2.95 million to £1.59 million, while allowing him to earn annual and long-term bonuses that could total up to eight times his new salary.
If approved, the proposal would raise Venkatakrishnan’s total maximum pay package from £9.8 million to £14.3 million. However, to trigger the highest payouts, Barclays would require a significant improvement in its “return on tangible equity” (ROTE), a key profitability metric. The new structure is designed to incentivize performance but also comes with higher demands on profitability than the bank’s current targets.
Barclays has reportedly consulted its largest shareholders regarding the potential changes to the pay structures for both Venkatakrishnan and finance chief Anna Cross. The bank’s remuneration committee is expected to outline the formal plans in its annual report, scheduled for release on February 13, alongside its full-year earnings report. Following this, the proposals will be put to a shareholder vote for approval.
This proposed pay restructure follows a broader shift in the UK banking sector, which has seen the European Union’s bonus cap, which previously limited bonuses to twice a banker’s salary, scrapped in late 2023. This change aims to enhance the City of London’s competitiveness following Brexit. Barclays became the first major UK bank to lift the bonus cap for senior staff last year, reflecting the evolving regulatory landscape.
Last year, an unnamed institutional investor reportedly urged Barclays to cut executives’ fixed salaries, rather than simply removing the bonus cap. In response, the bank’s new plan seeks to align variable compensation more closely with performance, while still offering significant rewards for top executives who meet the bank’s profitability goals.
A spokesperson for Barclays confirmed that the remuneration committee regularly consults stakeholders and emphasized that any changes to the pay structure would continue to prioritize sustainable performance and alignment with shareholder interests. The final decision will be determined after the shareholder vote later this year.
