Barclays was forced yesterday to reveal the pay of five senior bankers below board level under the terms of the Project Merlin agreement with the Government, but several of its best-paid staff remain under the radar.
It is because of Merlin, a deal struck between the Government and five banks last month, that we know the pay of Jerry del Missier and Rich Ricci, co-heads of the investment bank, for last year. They did not sit on Barclays’ board but were senior executives and so had to be disclosed.
The three other highly paid individuals not on the board were Tom Kalaris, head of Barclays’ wealth division, who received £7.9 million in pay and bonuses in 2010 and has been granted a long-term incentive award that could be worth about £1 million; Antony Jenkins, head of the retail bank, with a package worth £6.5 million; and Robert Le Blanc, head of risk, who is on a total of £5.2 million.
Barclays was not obliged to disclose the individuals’ names, but analysts worked out the pay among the top five earners.
However, critics said that Barclays had dodged a bullet. When Merlin was being negotiated, one option was for banks in Britain to have to follow the same rules as those of Hong Kong, where banks must disclose the five highest paid below the board, irrespective of whether they are senior executives or hold other roles. Inevitably, the disclosure captures banks’ highest-paid traders.
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There is a widespread view in the market that had Barclays been forced to follow the same rules, it would have had to admit that a handful of its best-paid traders in Barclays Capital were on packages of £20 million to £30 million last year.
The bank courted controversy several years ago when it emerged that Roger Jenkins, a senior figure at BarCap who set up its tax advisory practice, received about £40 million a year.
Mr Jenkins quit Barclays in 2009, when pressure was mounting on banks over pay and the Government began to consider forcing them to disclose more about the remuneration of individuals below board level.
The Independent Commission on Banking is considering potentially radical measures to make banks safer and more competitive, and has said that it will consider pay as part of its remit.