Barclays plans overhaul of CEO CS Venkatakrishnan’s pay

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Barclays is proposing to overhaul how it pays its chief executive X Venkatakrishnan in a move that would give him a fixed fee, but lenders are hitting his profitability targets.

The British bank wrote to investors this week outlining how it is paying Venkatakrishnan And Group Finance Director Anna Khach, according to a person familiar with the matter.

The approved changes will see Venkatakrishnan’s fixed pay rise from £2.95m to £1.59m, but the former JPMorgan executive will be eligible for bonuses and long-term stock options worth up to eight times his new salary.

They added that Venkatrishna, known as Venkat, will receive around £9 million if Barclays Achieved its previously stated target of tangible return on equity, a key measure of bank profitability, of 12 percent by 2026.

His maximum earnings would be more than £14m, but he would only be awarded that amount if Barclays reached more than 14 per cent tangible equity.

Venkatakrishni’s total salary reached £4.64m for 2023, down from £5.2m per year.

The move, which was first reported by Sky News, comes after Barclays took over last year the first Briton to write the note The EU-imposed banker’s bonus cap follows the UK’s 2023 decision to remove the cap on post-paid incentives in the City of London.

At that time, Barclays told the persons it would define bonuses For its large senior employees, the so-called material risk collectors, up to 10 times their fixed fee, while keeping the same.

Under the bonus cap, which was introduced in the EU in 2014. Bonuses capped at twice base salary due to global financial crisis.

Venkatakrishnan was A rare vocal supporter Chellor Rachel Reeves, who disappointed many business leaders by raising taxes by £40 billion in October’s budget and has so far struggled to revive Britain’s flagging economy.

Speaking at the World Economic Forum in Davos on Tuesday, Venkatakrishnan said there was “a lot to be optimistic about in the UK”, including in its financial sector. Reeves also attended the forum to business leaders and foreign investors.

Barclays said its remuneration committee “meets with stakeholders throughout the year to gather feedback on our hiring policy”.

“The Committee elects to recommend no change to our current director remuneration policy in 2025, the policy will continue to focus on sustainable performance and close alignment with shareholder interests.

“The committee will publish its views and decisions in its 2024 annual report on February 13.”