Barclays chairman: Libor review is ‘uncomfortable reading’
Approaches to pay at Barclays should be linked to adherence to values and standards, an internal report has recommended.
A 244-page review by the bank, launched in the wake of the Libor fixing scandal, has made 34 key recommendations for the financial institution.
The Independent Review of Barclays’ Business Practices by Anthony Salz, said “significant bonuses” should only be paid in the case of strong performance.
It said: “Significant bonuses should only be paid in the case of strong performance across all dimensions of a balanced scorecard which appropriately weights risk, values, and other non-financial elements.”
According to the report, pay should reasonably reflect individual talent and the contributions that individuals make, aiming to link pay to the long-term success of the institution.
It said: “Approaches to pay across the bank should be based on common underlying principles and be aligned with both the Group’s values and the level of risk to which it is exposed. Individual pay should systematically reflect individual adherence to values and standards.”
The report also recommends that the Board makes clear which committees have primary oversight of conduct, reputational and operational risks across the group.
Commenting on the review, Sir David Walker, chairman of Barclays, said: “The Salz Review was commissioned by the Barclays board in July of 2012 in the immediate aftermath of the publication of the Libor settlements.
“Its terms of reference were, broadly, to examine the bank’s values, principles and standards of operation – the historical culture - and to make recommendations for change.
“The report makes for uncomfortable reading in parts. That is bound to be the case when one asks for an independent examination of this kind, and we must learn from the findings.”