LONDON--Barclays PLC (BCS) is working on a radical new pay scheme that could see bonuses for top executives cut and not paid out until they retire, the Sunday Times reports without citing sources.
Under the new scheme, long-term bonus plans that have previously paid out sums running to tens of millions of pounds will be overhauled. Any big payouts would be held in shares and deferred until the executive retires or leaves the bank, the paper reports.
A representative for Barclays declined to comment.
Barclays' reputation has been severely tarnished in recent months by a flurry of financial scandals, most recently an investigation by the Financial Services Authority regarding the giant British bank's disclosure of fees and business arrangements with Qatari investors among others.
Qatar's sovereign wealth fund was among the investors that pumped a total of 7.3 billion pounds into Barclays during the first phase of the financial crisis.
That probe follows the resignation of three top executives last month including Chief Executive Bob Diamond after the bank acknowledged attempts to manipulate the London interbank offered rate, or Libor.
And, just 10 days ago Alison Carnwath, the head of Barclays remuneration committee, quit the bank's board with immediate effect for personal reasons, after a tumultuous two years at the company.
Ms. Carnwath had acted as a lightening rod for shareholder anger over the group's decision to pay out large bonuses to top executives.
Newspaper Web site: http://www.timesonline.co.uk
-London Bureau, Dow Jones Newswires; +44 (0)20 7842 9320