Barclays aims to dodge EU bank bonus cap with new top-up payments to staff

(Guardian) Barclays is working on ways to get around around the European Union's cap on bonuses by handing its top bankers new payments to top up perceived shortfalls caused by politicians' attempts to clamp down on escalating City rewards.

In proposals that were described as outrageous by campaigners for pay reform, the bank has been discussing a scheme with its major investors about how it might sidestep the restrictions on bonus payments being imposed by the EU from January. The restrictions are already subject to a legal challenge by George Osborne.

Barclays, whose new boss, Antony Jenkins, has pledged to clean up its culture after the Libor-rigging scandal, is not alone among major banks in sounding out investors about revamped pay policies. But it is thought to be presenting more detailed proposals than its UK rivals.

The new rules the banks are eager to avoid mean bankers' annual bonuses cannot be greater than their salary – or double their salary if shareholders have given specific approval.

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