Bob Diamond will stamp his authority on Barclays next month, when the incoming chief executive announces a radical overhaul of the way it pays its top bankers as part of a broader strategic review that could see the group shed staff and put increased pressure on underperforming businesses. According to people close to the plans, Mr Diamond aims to use innovative bonds – so-called contingent convertibles, or cocos – to pay a large portion of the bonuses for more than 1,000 bankers, those ranked at managing director level and above.
Next up: layoffs.
Barclays is also planning to announce a broad-based review of its operations, pinpointing underperforming units and setting strict improvement targets. Mr Diamond was likely to extend an ongoing cost-cutting exercise at Barclays Capital, the investment banking unit, across the group, bankers said. If the scale of the BarCap cuts was replicated group-wide, it would mean more than 3,000 job losses.