Barclays’ results: banks must be run for shareholders, not executives, says IoD

11 February 2014

Commenting on Barclays PLC’s full year results, Roger Barker, Director of Corporate Governance at the Institute of Directors, said:

“It cannot be right in any business for the executive bonus pool to be nearly three times bigger than the total dividend pay out to the company’s owners. In 2013, the bank paid out £859 million in dividends compared to a staff bonus pool of £2.38 billion. The question must be asked – for whom is this institution being run?

“Efforts to pay high bonuses based on exploitation of loopholes in the EU bonus rules also send a bad signal. Barclays needs to recognise that it starts in an extremely difficult place in the eyes of the public, given its ongoing stream of regulatory problems and infringements, including the recent loss of customer data, the LIBOR scandal and the mis-selling of PPI.

“This is not a matter for government. It is a matter for shareholders – and particularly large investment fund managers who have a duty to the ordinary workers whose pensions they are investing. Their approach to the banks continues to be supine. We would like to see shareholders take a more aggressive role in the governance of the bank, and in light of Barclays’ fragile reputational recovery we would urge the bank to ensure that the Chairman of its Remuneration Committee remains an independent director. “

ENDS

Contacts for further comments or to arrange interviews:

Christian May
Head of Media Relations
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
020 7451 3263
07908 358 728
christian.may@iod.com

Edwin Morgan
Deputy Head of Media Relations
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
020 7451 3392
07814 386 243
edwin.morgan@iod.com

Notes to editors

  • The Institute of Directors (IoD) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with approximately 38,000 members in the United Kingdom and overseas. Membership includes directors from right across the business spectrum – from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.
  • The IoD provides an effective voice to represent the interests of its members to key opinion-formers at the highest levels. These include Government ministers and their shadows, parliamentary committee members, senior civil servants and think-tanks. IoD policies and views are actively promoted to the national, regional and trade media. Follow us on Twitter to get the IoD’s reaction on business and public policy issues.
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