Barclays has proposed an overhaul of how its chief executive CS Venkatakrishnan is paid, a move that would cut his fixed pay but pay him £9m if the bank hits profit targets.
The British bank sent a letter to investors this week outlining plans to change the way it pays Venkatakrishnan and the group's finance chief Anna Cross, according to a person familiar with the matter.
If the changes are approved, Venkatakrishnan's fixed pay will be cut from 2.95 million pounds to 1.59 million pounds, but the former JPMorgan executive will be eligible for bonuses and long-term stock options worth up to eight times his new salary, the person said.
Venkatakrishnan, known as Venkat, will receive around £9m if Barclays achieves its target of 12% return on tangible equity, a key measure of the bank's profitability, by 2026, they added.
His maximum earnings are capped at just over 14 million pounds, but he will only receive that amount if Barclays' return on tangible equity exceeds 14%, the person said.
Venkatakrishnan's total remuneration for 2023 will be £4.64m, down from £5.2m a year ago.
The move, first reported by Sky News, follows Britain's decision in 2023 to lift post-Brexit restrictions that have boosted the City of London, with Barclays last year becoming the first British bank in London to lift an EU-mandated cap on bankers' bonuses.
At the time, Barclays told staff it would set bonuses of up to 10 times fixed pay for its most senior staff, so-called material risk takers, while keeping base pay unchanged.
In the wake of the global financial crisis, the EU introduced bonus caps in 2014, capping bonuses at twice base salary.
Venkatakrishnan is a rare outspoken supporter of Chancellor Rachel Reeves, who raised taxes by £40bn in October's budget, frustrating many business leaders and so far has been trying to revive Britain's flagging economy.
Venkata Krishnan, speaking at the World Economic Forum in Davos on Tuesday, said there was "much to be optimistic about in the UK", including its financial sector. Reeves also attended the forum to attract business leaders and foreign investors.
Barclays said its remuneration committee "meets with stakeholders throughout the year to gather feedback on our remuneration policy".
"Regardless of whether the committee chooses to propose any changes to our current director remuneration policy in 2025, the policy will continue to be focused on rewarding sustainable performance and closely aligned with shareholder interests.
"The committee will publish their views and decisions in the 2024 annual report on February 13."