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Barclays plans to raise junior bankers' pay to retain talent: Bloomberg
[LONDON] Barclays Plc is planning to raise pay for junior investment bankers as the British bank seeks to retain talent, Bloomberg News reported, citing two persons familiar with the matter.
Some junior executives of the bank are set to receive raises in salary and bonuses as high as 40 per cent, Bloomberg said. The plan has led to dissatisfaction among mid-level employees over the narrowing compensation gap with their juniors, according to the report.
Barclays' overall bonus pool is expected to shrink, Bloomberg reported citing another person familiar with the matter.
The company will announce internally its decisions on pay this week, the report said.
Barclays was not immediately available for comment.
Juniors on the corporate-finance desk at Paris-based BNP Paribas SA may also receive at least 10 per cent more in salaries and 5 per cent more in bonus, the report said.
Goldman Sachs Group Inc, JPMorgan Chase & Co and Bank of America Corp were all looking to raise salaries by at least 20 per cent for 2015, the report said.
European banks, including Barclays, Deutsche Bank, Credit Suisse and UBS AG, typically pay less than their US rivals.
Emolument, a salary benchmarking site, said last month bonuses for advisory and origination staff in London could jump by 25 percent on average, based on data from 360 front office bankers working in London.
Payouts in equities would dip 3-5 per cent and in fixed income, currencies and commodities bonuses would fall 5-7 per cent, Emolument had said.