Barclays to slash 2008 bonuses by half

Barclays has announced it will halve the amount it pays out in employee bonuses for 2008.
It will also review its bonus structure.
John Varley, Barclays’ chief executive, said the changes reflected the bank’s payment for performance policy.
He spoke as Barclays posted its annual reports for 2008, which showed a 14.8% drop in pre-tax profits on the previous year.
Varley said senior employees would take a bigger cut in bonuses than those further down the pay scale.
The bank’s board of directors will forgo their bonus entirely, as previously announced by the bank in November 2008.
Varley said Barclays also plans to carry out a review of how it rewards employees in future.
This could mean senior employees taking more of their bonuses in shares and in deferred compensation.
Target structures could also be changed following the review to reward longer-term performance.