This is coming from Bob Diamond, the CEO who has fired has fired up to 40 bankers for being jerks, prima donnas or overly ostentatious.In short: Bob Diamond knows we’re living in a new era. That’s why banker pay at the British bank will be cut by 25% to 30%, Bloomberg reports.
The firm will also fire 5% of its senior banks (read: most expensive employees), that means executive directors and managing directors.
Barclays also plans to cut remuneration for more junior employees such as vice presidents, associates and analysts, the people said. The London-based bank plans to reduce pay for third-year vice presidents, which can be as much as $750,000 a year, by about $100,000, the people said.
The reduction will trigger similar pay cuts for more junior vice presidents, associates and analysts, the people said. In past years, base pay for junior bankers, who typically comprise three-fourths of a Wall Street firm’s employees, would rise by 15 per cent to 20 per cent annually, even in lean years, the people said.