First order of business: bonuses. Bobby’s been working on something he thinks you’re gonna love.

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.


Barclays To Unveil Radical Pay Overhaul
[FT]

Related (…?): Bob Diamond Will Not Be Limiting Bonuses For Barclays Staff This Year, Would Appreciate It If The Bank Bashers Would Piss Off, Buy A Clue

Comments (32)

  1. Posted by ItJustSaysAlmost | January 24, 2011 at 3:51 PM

    Cocos are sooo tantric.

  2. Posted by Chuddy | January 24, 2011 at 3:53 PM

    He will distribute the UBS employee manual and instruct everyone to do the complete opposite. He will then be the most successful CEO since Jack Welsh.

  3. Posted by Guest | January 24, 2011 at 3:57 PM

    that attempt at humor sucked more than rex on michelle’s toes last night.

  4. Posted by Guest | January 24, 2011 at 3:57 PM

    that attempt at humor sucked more than rex on michelle’s toes last night.

  5. Posted by Guest | January 24, 2011 at 3:57 PM

    that attempt at humor sucked more than rex on michelle’s toes last night.

  6. Posted by Anon | January 24, 2011 at 4:00 PM

    Hi . . Pot? You are black.

    -Kettle

  7. Posted by Anon | January 24, 2011 at 4:00 PM

    Hi . . Pot? You are black.

    -Kettle

  8. Posted by Anon | January 24, 2011 at 4:00 PM

    Hi . . Pot? You are black.

    -Kettle

  9. Posted by Guest | January 24, 2011 at 4:02 PM

    I hear Morgan Stanley is hiring.

  10. Posted by Guest | January 24, 2011 at 4:02 PM

    I hear Morgan Stanley is hiring.

  11. Posted by Guest | January 24, 2011 at 4:02 PM

    I hear Morgan Stanley is hiring.

  12. Posted by Welch's Grape Juice | January 24, 2011 at 4:06 PM

    Jack Welsh? Is he the guy who doesn’t pay his bets when he loses?

  13. Posted by Idiot | January 24, 2011 at 4:20 PM

    LOL, do you? Because they’re actually planning layoffs, and hoping people quit over shitty bonuses. Please continue sharing your intel though.

  14. Posted by JeffImmelt | January 24, 2011 at 4:22 PM

    WelCh, you moron. Wel-C-h.

  15. Posted by Abc | January 24, 2011 at 4:34 PM

    Cocos and layoffs are great ideas , especially because I convinced Bob to do both.(Bob is easily more pliable that Dickie Fuld)
    Of course, since I am the greatest lawyer and banker on Wall Street, I will be receiving my bonus in cash and will never be laid off.
    S. Berkenfeld

  16. Posted by NakedShort | January 24, 2011 at 4:43 PM

    maybe he could create a new super bonus. Cocobonobos

  17. Posted by You_guest_it | January 24, 2011 at 4:49 PM

    Cocos – really? I think most people would rather be paid in Grey Goose.

    -Ted Williams

  18. Posted by guest | January 24, 2011 at 5:08 PM
  19. Posted by Guest | January 24, 2011 at 5:38 PM

    he does not look regal in that pic.

  20. Posted by Angelo Mozilo | January 24, 2011 at 5:45 PM

    Agree, he could use a lot more product.

  21. Posted by Frank | January 24, 2011 at 6:16 PM

    Respect the genius and CEO who brought such innovative ideas to Welsh’s food and drink company, such as “real” fruit juice gummy snacks, and grape freeze pops

    - UBS Analyst with Columbia MBA

  22. Posted by Bonus Malfunction | January 24, 2011 at 6:22 PM

    Cocos ?

    Mine wasn’t even warm and I have to give the cup back.

    Barcap Quant

  23. Posted by Bonus Malfunction | January 24, 2011 at 6:22 PM

    Cocos ?

    Mine wasn’t even warm and I have to give the cup back.

    Barcap Quant

  24. Posted by guest | January 24, 2011 at 7:01 PM

    What is the deal with Steven Berkenfeld? Why is there so much hate for him?

    -Guy who keeps seeing these comments but doesn’t know anything about S. Berkenfeld

  25. Posted by Abc | January 24, 2011 at 7:09 PM

    Reply to Guest
    To know S Berkenfeld (from Lehman) is to despise him

  26. Posted by Culture Clash | January 24, 2011 at 7:14 PM

    I am curious what kind of reception Chainsaw Bob is getting from Barclays the fuddly duddly UK commercial bank

  27. Posted by con | January 24, 2011 at 8:41 PM

    Why did Glenn Hadden just join Morgan Stanley??

    - confused

  28. Posted by con | January 24, 2011 at 8:41 PM

    Why did Glenn Hadden just join Morgan Stanley??

    - confused

  29. Posted by Guest | January 25, 2011 at 12:30 AM

    Hmm.

    I wonder if a UBS Employee Dress Code Calender, along the lines of the firefighters calendar, featuring UBS employees in regulation underwear would sell well enough to make up for their bonuses.

    - Guy who is just trying to help and is glad to have SpellCheck

  30. Posted by Guest | January 25, 2011 at 12:31 AM

    Does Columbia suck?

  31. Posted by Guest | January 25, 2011 at 3:03 AM

    pretty sure one isolated hire does not a trend make.

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