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.
UK Banks Might Face Restructuring Soon
The chairman of the United Kingdom’s Independent Commission on Banking, Sir John Vickers, shared his opinions last Saturday at a luncheon in London Business School on how and why the structure of Britain’s banks should be changed and altered altogether to make them much more protected as a whole country. He has outlined the many reasons how shields should be put up as well as other relevant activities that big banks should do to be able to safeguard the British economy as well as the taxpayers of the country. All measures must be done to avoid any failure in the part of the banks.
Global Inflation Slowly Easing In
A lot of the top investors of the world have turned down the various government bonds of different developed countries because of the possibility of inflation. Figures extracted this week showed that the UK consumer price index was at 3.7% as well as the borrowing cost of Britain at an eight month high at 3.72 triggered fears in the investors more than ever. For the first time in two years, inflation in Europe rose to more than the predicted figure from the European Central Bank.
Chinese Economy Feared to be Overheating
A lot of financial analysts and economists are very much concerned about the Chinese economy as they have all observed that overheating of the economy is highly obvious following the official figures that are revealed to the public, showing the inflation that is well above their target. There was also in increase in the minimum wage in Guangdong. This is the second big increase of China’s biggest provincial economy in just less than 12 months, at a recorded 18 to 26%.
