He may have only replaced Mark Harding late last year but Barclays‘ recently appointed group general counsel Bob Hoyt has been awarded more than £700,000 in shares just four months into the role.
Following 2013’s controversial bonus round, the bank announced yesterday (18 March) that it is rewarding 12 of its top executives almost £32m in shares. This total is around 20% less than last year, when the bank paid out £40.2m in shares to nine of its executives.
The award saw Hoyt handed 302,596 in shares valued at 232.59p each, worth £703,808. From this, Hoyt sold 142,221 shares at 231.85p per share, equating to just over £329,739 to meet tax liabilities.
The largest payout was made to US chief Hugh ‘Skip’ McGee, who was given more £8.87m in shares, followed by co-chief executive of corporate and investment Eric Bommensath, who was awarded £8.6m, while chief executive Antony Jenkins received shares worth £3.82m.
Hoyt joined Barclays in October 2013 from PNC Financial Services Group, after a search to fill the big shoes of Harding, who announced plans to leave in February. By way of comparison, Harding received a huge £3.7m in shares under a long term incentive plan at 308.1p each for a total of 1.224m shares.
Barclays has attracted much criticism for boosting its 2013 total bonus pool despite its profits shrinking by 32% to £5,167m before tax, and an overall 4% reduction in income in 2013.
Last year, it began the biggest capital raising by a UK bank since 2009, on which Clifford Chance, Sullivan & Cromwell and Freshfields Bruckhaus Deringer led on the initial £5.8bn issue, as the bank aimed to plug a £12.8bn funding gap.
In 2012, the Financial Conduct Authority (FCA) fined Barclays Bank £59.5m for misconduct relating to the London Interbank Offered Rate (LIBOR) and the Euro Interbank Offered Rate (EURIBOR) – the second largest fine since 2011.
Jaishree.kalia@legalease.co.uk