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Barclays Executives Waive Annual Bonuses
Decision follows meetings with institutional shareholders.
November 18, 2008
Executive directors at Barclays Plc have agreed to forego their 2008 bonuses, the latest financial giant to see its top managers waive their bonuses in a year that will be remembered as one of the worst for the industry.
Barclays said on Tuesday that in the wake of its announcement on Oct. 31 to raise capital from new and existing investors, a number of meetings took place between senior officers of Barclays and the firm’s institutional shareholders.
"The discussions have been constructive and the board of Barclays has listened carefully to shareholders' views," the British bank said in a statement.
Barclays is the latest financial behemoth to see its managers give up their 2008 bonus money. Over the weekend, news emerged that Goldman Sachs' top seven executives informed its board of directors' compensation committee that they wanted to forego year-end awards. The board voted to accept their offer.
In October, Barclays said it planned to raise £7.3 billion, or $11.8 billion, through the sale of securities to Qatar Holding, a member of Abu Dhabiʼs royal family and Challenger Universal Ltd.
The money will be raised through the sale of £3 billion of reserve capital instruments, with an associated issue of warrants and up to £4.3 billion of mandatorily convertible notes.
Challenger Universal is a special purpose vehicle incorporated in the British Virgin Islands in June to hold shares in Barclays. It is owned by the chairman of Qatar Holding, Hamad Bin Jassim Bin Jabr Al Thani, and his family.
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