Barclays to Bump Up Salaries to Beat EU Banker Bonus Cap

Britain's second largest bank Barclays will boost fixed pay for some workers next year to counter the European Union's new bonus rules.

The lender plans to introduce "role-based-pay", according to Bloomberg.

The new payment system means that some employees will receive remuneration on top of their base salaries and variable bonuses.

The move follows new legislation voted through the European Parliament and European Commission which will limit bankers' bonuses to 200% of their salary.

The law, which comes into force from January 2014 and will apply to bonuses paid in 2015, is intended to discourage irresponsible risk-taking and curb the bonus driven culture in banking following the financial crisis.

The European Banking Authority has yet to flesh out all the detail of the new rules, but the organisation said the cap would be applied to "risk-takers".

The UK government attempted to prevent the law passing in March, but was unsuccessful.

Barclays declined to comment.

HSBC

The news follows the announcement by HSBC's chief executive Stuart Gulliver that he would protect bankers' bonuses and "competitive salaries" against the new rules.

Speaking on an investor call, following HSBC's third quarter results announcement, Gulliver said he "will do what[ever] it takes to protect [the bank's] competitive position on pay amid the EU bonus cap."

The pledge comes as the bank posted a 10% jump in profits for the third quarter this year following an aggressive cost cutting plan.