Barclays freezes ex-CEO's bonuses over probe
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LONDON • British bank Barclays on Wednesday suspended £22 million (S$40 million) of bonuses owed to former boss Jes Staley amid a probe into his links with the late American sex offender Jeffrey Epstein.
The bank said its nominations committee made the decision "pending further developments in respect of the regulatory and legal proceedings related to the ongoing investigation regarding Mr Staley".
The former chief executive, who stepped down last year, was still entitled to a contractual entitlement of £2.4 million in cash and shares - equivalent to 12 months' salary - as well as pension and other benefits.
He resigned last November ahead of contesting the outcome of the British investigation into his relationship with Epstein, the financier who killed himself in 2019 while awaiting trial on charges of trafficking underage girls for sex.
The bank has stressed that watchdogs have made no findings that Mr Staley saw or was aware of Epstein's crimes.
Mr Staley has expressed deep regret at having had a professional relationship with Epstein before becoming Barclays' head in late 2015.
Barclays on Wednesday also revealed it had beefed up its staff bonus pool after last year's net profits more than quadrupled as the economy recovered from the Covid-19 fallout.
Profit after tax surged to almost £6.4 billion, helped by the release of £700 million set aside for bad loans. That compared with a £1.5 billion profit the prior year, when it took a £4.8 billion charge to cover the Covid-19 fallout.
The bank ramped up its total bonus pool by almost a quarter to more than £1.9 billion, becoming the latest lender to shrug off Britain's cost of living crisis with dizzying staff incentives.
Addressing MPs on the state of the economy, Bank of England governor Andrew Bailey on Wednesday asked retail banking giants to reflect on the high cost of living situation for the bulk of Britons when handing out big bonuses.
Barclays says big bonuses are required to avoid losing talent. On Wednesday, it said the 2021 profits performance was "driven by an improved macroeconomic outlook" and buoyed also by reduced unsecured lending balances and a benign credit environment.
AGENCE FRANCE-PRESSE
