Barclays is considering withholding bonuses from some of its lower-performing investment bankers due to the dip in capital markets, according to Bloomberg. This move could lead to further departures and affect the company’s competitive position. Although Barclays has not publicly released details regarding its 2023 bonus pool, currently it plans to decrease payouts for its lowest-performing bankers.
In 2019, the head of Barclays’ investment banking unit resigned, followed by more than 30 of its roughly 200 managing directors last year, which was driven by a shake-up in the investment banking arm that led to pay cuts. Executives at the bank are concerned that the current bonus cuts may lead to another mass exodus.
The decreased stock price and concerns from shareholders and executives about the size of the division demonstrate that the troubled investment arm has wider implications. In addition to these challenges, Barclays also announced an acquisition of the banking arm of British supermarket chain Tesco for about £600 million, or $757 million.