Business

Barclays boss Antony Jenkins says he 'understands' pay concern

  • 11 May 2014
  • From the section Business
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Media captionBarclays Group CEO Antony Jenkins told Andrew Marr the change of direction was "a big change in thinking"

The boss of Barclays, Antony Jenkins, says he understands the public's concern about bankers pay but that levels of pay need to be competitive.

Speaking on the BBC's Andrew Marr show, he said that the bank would get value for money from its employees.

He added that he would "not be repeating the situation in which profits are down and bonuses are up".

Barclays announced last week that it would cut 19,000 jobs by 2016, with more than 9,000 to go in the UK.

About 7,000 of the job losses will come in its investment bank division.

Mr Jenkins said the world of investment banking had changed dramatically and size was no longer the main objective.

He explained that new regulation which required the bank to hold more capital meant that some parts of investment banking "didn't always make sense any more".

Ten year horizon

Earlier this year about one third of Barclays shareholders chose not to approve the bank's remuneration report, which included a 10% increase in the bonus pool despite a 30% fall in profits.

Mr Jenkins said the bank had not taken that decision lightly but felt that, given the changes that were coming in the company, they needed to pay that amount to retain their best people and that the situation would not be repeated.

Talking about the retail operation, he said that on a ten year horizon there would probably be fewer high street bank branches, but that "there is still going to be a need for people to go into a branch and talk about mortgages or saving product so there will still be lots of branches even in ten years time".

There was no target for branch closures at the moment, he added, and so employees working there had no need to be concerned about their jobs.

The Barclays retail banking arm employs 32,900 people in the UK, and around 5,900 in Europe.

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