Barclays Bank has doubled the amount of money it is investing in staff
bonuses to help it meet its ambitious plans for growth.
The bank aims to double its value every four years and has changed its bonus
structure in a bid to achieve this objective.
All staff are eligible to receive a bonus connected to the company’s
performance against its key objectives.
The bank also operates a profit share scheme that pays out up to 9 per cent
of staff salaries.
Jeremy Orbell, executive director of reward at Barclays, told delegates at
the conference last week that the company’s new bonus structure has at least
doubled the amount of money the company spends on bonuses.
He revealed Barclays staff are now eligible for bonuses of up to 40 per cent
of salary in most cases – and as high as 100 per cent for senior staff –
whereas in the past, it only used to award bonuses of between 10 and 20 per
cent of salary.
Orbell said the improved bonus scheme was introduced to improve staff
retention. "Retention of key people by direct compensation and/or other
equity is a key issue," he said.
"Cash is still king. It is very important that the annual bonus is
flexible and linked to performance criteria."