LONDON (Reuters) – Barclays (BARC.L) is planning to cut the 396,000 pounds ($508,068) pension allowance it pays Chief Executive Jes Staley by around half, echoing moves by rivals who have pledged to rein in executive pension perks following a campaign by investors.
The British lender is consulting shareholders on the proposal in a review of its remuneration policy to be voted on at the bank’s annual meeting next year, a source with knowledge of the matter said.
The possible changes follow protests from investors and employee unions over the disparity between pension payouts offered to Britain’s top bank bosses and their staff.
Barclays is looking to boost typical pension contributions paid to employees from 10% to 12.5%, the source added.
But Staley’s new cash payment would equate to around 17% of the 1.18 million pound annual salary he was paid last year, suggesting Barclays is stopping short of full harmonization, risking further investor dissent and scrutiny from policymakers.
“It’s a start but these cuts do not really go far enough. There’s no real reason why CEO pension payments shouldn’t be completely in line with other staff,” Peter Parry, policy director at investor group ShareSoc told Reuters.
“There is always a worry that when companies rein in pay in one area, they compensate for it in another area. The sad thing is that executive pay is now out of control,” he said.