Barclays has been facing a lot of criticism for terminating some professionals. But then, many companies have been letting go employees. How was Barclays doing anything different, you are wondering? Well, the bank let go 15 bankers just before the holidays and that too without paying them their bonuses.
These 15 were from New York (and part of the 50 that were terminated last month) and were handed their termination letters instead of their bonuses at the end of the year. Their bonuses, which are an important part of their compensation were reportedly denied to them.
It is pertinent to mention here that investment bankers are usually paid a salary of about $200,000 salary, while their bonuses can be anywhere up to $1 million.
Barclays is being branded as rather irresponsible for not paying the bonus against the work that has already been completed by the bankers.
Other banks are known to pay out part of the bonuses to employees who are laid off towards the end of the year. Barclays, however, has been accused of being brutal for not paying the bonuses, that too when the employees were let go just before Christmas.
Not surprisingly, the impacted employees are considering going to court and seeking millions in damage.
However, for Barclays, cutting bonuses is not something new. It did so last year too, reducing the bonuses by 43 per cent amidst falling revenues.
