Banking giant Barclays has slashed the bonus pool for its investment banking arm by 32% in 2011 to £1.5 billion amid mounting pressure over the controversial payouts.
The average bonus for staff at Barclays Capital was cut by 30% to £64,000 as volatile market conditions saw the powerhouse division's profits slide 32% to £2.96 billion.
Meanwhile, the group total bonus pool was down 25% at £2.2 billion with the average payout for a group employee down 21% year on year to £15,200.
Elsewhere, the bank, which reported pre-tax profits of £5.8 billion for 2011, down 3% on the previous year, said it had capped the cash part of bonuses for investment bankers at £65,000. This compares to £2,000 at the state-backed banks.
The results come after weeks of conflict over bankers' bonuses, in which Royal Bank of Scotland chief Stephen Hester turned down his £963,000 bonus amid mounting pressure and Lloyds boss Antonio Horta-Osorio waived his own payout following a leave of absence.
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