On Friday, Antony Jenkins the CEO at Barclays Bank announced he would forego his bonus for 2012 following a difficult year at the bank, which was plagued during the year for the scandal involving Libor rate-rigging.
Jenkins’ announcement came after reports from the media said the lender was preparing to pay the CEO a bonus of more than $1.6 million for 2012. He announced he was very aware of the speculation about his possible bonus over his performance for 2012. He said to avoid further public debate about the bonus, he wanted it to be clear that he decided he did not want to receive a bonus and told the board of directors the same.
The year was very difficult for the bank and the bank’s shareholders said Jenkins, and it is only right that he bears the correct degree of accountability in those matters.
Adding to the pressure at the bank is that this week Jenkins along with Sir David Walker the bank’s chairman will be asked by politicians to answer the new allegations about the fundraising by the bank in the Middle East during 2008, which helped the bank avoid a bailout by the government.
Lords and MPs that make up the Banking Standards Commission in Britain will grill the two men Tuesday morning. One British newspaper alleged that regulators are examining whether Qatar was lent money by the bank to invest in Barclay’s shares during the multi-billion dollar cash call at the bank in 2008.
If that were to have taken place without being fully disclosed, it would break market rules. In 2008, the bank received nearly $10 billion from Qatar Holding, a subsidiary of Qatar Investment Authority, the prime minister of Qatar’s investment vehicle.