Barclays Plc is set to increase annual bonuses by as much as 20% after an improved year for traders and investment bankers.
Staff in Barclays’s trading unit are expected to see a 5% to 10% rise in their annual awards, while bankers in debt and equity capital markets could see bonuses jump by between 10% and 20%, according to people familiar with the matter.
While final decisions on the bonus pool are still being made, staff in the investment bank are on course for markedly better payouts, the people said, asking not to be named as the details on pay aren’t yet public.
A year ago, dozens of bankers got no bonuses whatsoever after a dry spell in corporate dealmaking and capital markets. Bonuses fell 43% last year across the bank, according to its 2023 annual report, following an 8% decline in 2022 that was partly due to conduct issues.
A spokeswoman for Barclays declined to comment.
The London-headquartered bank has enjoyed a strong year as activity in markets improved and Chief Executive Officer C.S. Venkatakrishnan plowed ahead with a multi-year plan to boost returns. In October, Barclays said advisory revenue more than doubled in the third quarter compared to a year ago, while revenue from fixed-income and equity traders beat expectations. Barclays also increased its forecast for net interest income to reflect stubbornly high interest rates.
Across Wall Street, expectations are rising for a decent year for bonuses, particularly in capital markets-related jobs. Bankers involved in debt sales are predicted to get a 23% rise in their total pay for 2024 compared with last, according to search firm Options Group, while Johnson Associates Inc. is forecasting even bigger rises of 25% to 35% for debt capital markets employees.