Economy
Barclays to defer bonuses? |
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| Economy | |
| Written by Gary Howes | |
| Monday, 25 January 2010 | |
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Morning Business News, Monday 25th January: Barclays, Goldman Sachs, World Economic Forum, UK recession, house price rises.
Barclays (LON:BARC) is reportedly looking at introducing a bonus deferral system in order to avoid the negative publicity that would likely arise when the companies latest remuneration details are made available. Middle ranking staff will defer up to 75% of their bonus for next three years and low ranking staff defer up to 50% of their bonus for the next three years. While the company has yet to confirm rumours in the financial press today, sources close to the company have indicated that the Barclays Capital bonus pool will also fall from 82% of net income last year in a move to quell fears of a return to the boom times in the financial sector. Goldman Sachs GroupThe 100 most senior employees at Goldman Sachs Group (NYSE:GS) in London will have their total pay capped at £1m when the Wall Street bank reveals its 2009 bonuses this week, in a nod to the Government’s calls for cutbacks in bankers’ pay. Less senior British employees who are awarded more than £1m for their work last year will have 60% of any amount over £1m paid in deferred stock, in line with Financial Services Authority guidelines, the Telegraph reports. World Economic ForumSenior Wall Street bankers heading to the World Economic Forum will use the meeting in Davos to lobby regulators against a rigorous implementation of Barack Obama's plan to cap the size and trading activity of banks. They will also oppose the break-up of large financial institutions and insist there should be a concerted effort to tackle the "too big to fail" issue by other regulatory means, the FT reports. End of the UK recessionGordon Brown will anticipate the end of the deepest recession in Britain since the 1930s by outlining today how the Government will try to lock in the economy’s nascent recovery. His comments will come before publication of official data tomorrow that is expected to show that Britain is out of recession. Gross domestic product (GDP) figures for the fourth quarter of 2009, to be released by the Office for National Statistics (ONS), are expected to indicate that the economy has grown for the first time in 18 months after a period in which it shrank by 6%, the Times reports. House price risesMeanwhile, most Britons believe that house prices will rise this year as the country awaits official confirmation that the worst peacetime recession is finally over. A survey by Rightmove, the property website, found that 53%in the UK believe house prices will rise over the next 12 months, compared with just 10% at the beginning of last year, the Telegraph reports.
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