Barclays former chief executive Antony Jenkins will receive 500,000 pounds worth of bonus despite being dismissed from the company. This monetary consideration was related to Jenkins work performance last 2015.
The decision to give Jenkins the amount was based on the British bank remuneration committee's findings regarding the good performance of the former executive during his years in Barclays. According to the committee, Jenkins employment contract made him eligible for 80% of his total salary of 2.05 million pounds which amounted to 1.64 million pounds. But since he left his job halfway of the year, Jenkins would probably get 840,000 pounds of eligibility bonus.
According to International Business Times, expert's, however, questioned why the bank still gave him a performance bonus considering the fact that the bank let him go because of the mere reason that he is not transforming the bank fast enough. According to Barclays' management, the remuneration committee found out that Jenkins was considered for a pro-rated 2015 bonus for the role as chief executive and everything was subjected to the committee's discretion.
Aside from the bonus that Jenkins will receive, he is also eligible to receive his current salary, role-based pay, pension allowance and other outstanding benefits until July 7, 2016. According to the Daily Mail, Jenkins is not the only bank executive that was able to receive money after being dismissed. Ex-chief executive Stephen Hester of the Royal Bank of Scotland also received 2 million pounds two years after he was relieved by George Osborne last 2015.
According to Mervyn King, who is a former governor of the Bank of England, another financial crisis is certain due to the failure of the banking system to be reformed since it last crashed. He added that it is better to tackle uncertainties sooner rather than later, as per The Guardian.
Barclays chairman John McFarlane on the other hand, said they are aspiring to bring their shareholders return. They need to be more focused on what is attractive, what is good and what they are good at.
All payments that are eligible for release will be given at a scheduled release date. The details of Jenkins' pay will be published on their remuneration report which will be released on March 1, together with their annual report for the year 2015.
