Barclays Shareholders Fed Up with Fat Pay-Outs
Several Barclays Bank (NYSE:BCS) investors have had enough of fat bonuses for industry executives. Some of Barclays’ most influential shareholders, including Jupiter, F&C Asset Management and Legal & General, have stepped up their efforts to convince banks to be more moderate with compensation for senior bankers, according to a Financial Times report.
Near the end of 2011, a group of U.K shareholders began asking banks to pay more attention to public sentiment and bear in mind recent steep declines in shareholder returns when issuing pay-outs, said the report.
According to the report, one of Barclay’s leading investors commented that banks need to use “real restraint” or face an investor uprising. “Barclays is the real bellwether in the sector and we have been turning up the heat,” the shareholder said.
In a separate case, the Daily Telegraph reported that the U.K. parliament’s Treasury Select Committee is thinking of asking Penny Hughes, the head of the remuneration committee at the Royal Bank of Scotland Group PLC (NYSE:RBS), to defend the bonus its chief executive received, said MarketWatch.