Barclays to Reveal a New Pay Plan for Top Bankers

Barclays will have a new chief executive to step up next month.  Bob Diamond is set to announce a very radical yet essential overhaul on its pay for the top bankers.  He said that it is a big part of what they call a broader and a more strategic plan on boosting their performance, shed some staff members, and put pressure that will shake up businesses that do not perform as well as the others.

Innovative bonds, more commonly known as contingent convertibles or cocos, will be used by Mr. Diamond to be able to pay the bonuses of over 1,000 bankers from the managing director going up.  This is just one step in the many other ways that banks around the world are trying to cope with the new rule that banks are supposed to defer the big bonuses.

The pay plan of Barclays will be announced in the middle of February and is yet to reach the United Kingdom’s Financial Services Authority for a final seal of approval.

Barclays is also set to release to the public their plans of having a review on their operations to weed out the units that are not performing very well and provide strict targets that will bring about improvement and better performance.  There will also be cost cutting exercises at Barclays Capital under the supervision of Mr. Diamond.  With this, there might be at least 3,000 job losses should the cost cutting will be applied group wide.