British banking giant Barclays is considering a new remuneration policy to dodge EU bank bonus cap.
The bank is reportedly discussing with major shareholders option of offering a new award to its top bankers based on their seniority and responsibilities.
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Barclays’ current plan is to hand out a third payment to bankers in addition to the basic salary and traditional bonuses, according to a ‘Sky News’ report.
The payment could take the form of a monthly allowance, paid in cash in addition to salary but not taken into account when bonuses are allocated.
The plans come after the EU brokered a draft deal in February this year to cap outlaw banker bonuses that are more than twice fixed pay.
However, the British government opposed the law, raising apprehension that they would harm the competitiveness of the nation’s finance industry.
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By GlobalDataBarclays is not the only bank to oppose the new rule, its rivals including HSBC, have expressed concern that the restrictions will lead to staff being poached by US and Asia-based rivals.
Pay reform campaigners have described the plan to sidestep European Union clampdown on rising bonuses as ‘outrageous’.
