Greater than a dozen New York-based Barclays bankers and merchants had been fired simply earlier than the vacations — and so they obtained coal of their stocking by being denied bonuses, The Publish has realized.
The scrooges at Barclays, the UK-based lending large, canned 15 Wall Road employees out of the roughly 50 it pink-slipped final month, two sources with shut data of the state of affairs mentioned.
None got a bonus, the sources added, depriving them of a windfall because the majority of their compensation comes from the year-end bump.
For instance, an funding banker may make a $200,000 wage and an anticipated $1 million bonus, one of many sources mentioned.
One employment lawyer informed The Publish that whereas it’s not unprecedented for banks to fireside employees late within the 12 months, the truth that they weren’t giving a bonus is fairly heartless.
“A good employer will pay the bonus pro-rata for the amount of time worked during the year, but some don’t,” mentioned Tanvir Rahman, an lawyer for legislation agency Filippatos.
Rival Wall Road corporations, together with Goldman Sachs and Financial institution of America, award bonuses — maybe half — when firing bankers and merchants towards the tip of the 12 months, one of many sources mentioned.
A spokesperson for Barclays stood by its determination.
“We regularly review our talent pool to ensure that we are investing in talent, delivering for clients and best positioned for long-term success as we execute against our strategy,” the rep informed The Publish.
Among the fired bankers are contemplating submitting $10 million-plus lawsuits, a supply mentioned.
They may possible contend that the bonus is earned all year long and isn’t discretionary, sources mentioned.
Rahman mentioned they might have a troublesome time successful their circumstances, although they typically find yourself in arbitration with the Monetary Business Regulatory Authority (FINRA).
“The banks often in their labor agreements say you have to be employed at the time of the bonus to get your bonus,” Rahman mentioned.
Barclays, which has greater than 13,000 employees within the US, didn’t pay bonuses to dozens of bankers final 12 months as income declined and lower bonuses by 43% throughout the financial institution in 2023, in response to Monetary Information.
The lender was anticipated to extend bonuses by as a lot as 20% to some departments this 12 months as dealmaking rebounded, the outlet added.
Earlier this 12 months, Barclays introduced a three-year plan to grow to be an easier and extra environment friendly financial institution, wherein it doesn’t depend on a big share of its income from funding banking.
