24 Jan 2010

Barclays bank to defer bonuses

6:58 am on 24 January 2010

Barclays is to defer paying bonuses earned this year to its directors and senior staff for up to three years.

The bank - the third largest in Britain - said the payments for last year had not been set, but when they are, they will be paid mostly in shares in staggered form up until 2013.

On Thursday, President Barack Obama proposed significant curbs on the size and scope of banks operating in the United States.

The BBC reports Barclays did not receive any money directly from British taxpayers during the financial crisis.

However, a notable share of its business was sold to the government of Abu Dhabi.

The bank will tell its 130,000 employees over the next few weeks that while they will be getting a bonus, almost all of it will be deferred over the next three years - and this will be the new ongoing policy.

Barclays will publish exactly what bonuses are to be allocated in March.

RBS has already said none of its board members would receive their entire bonus this year and it too would be paid in staggered form up to 2013.