The meaning of the magic of Merlin
Barclays have got back to me on Merlin.
I asked whether it was consistent for the bank to exclude deferred bonus payments to staff (vesting in 2010) from the calculation of the 2010 bonus pot given that the Merlin agreement with the Treasury states:
“The four banks confirm that the aggregate 2010 bonus pool (including deferrals) for their UK-based staff will be lower than that of 2009.”
Here’s what Barclays has to say:
“Payment this year of last year’s bonus has no relationship whatsoever with ‘this year’s bonus’ – the latter was the focus of Merlin.”
So now we know the Barclays’ interpretation of its commitment: When Merlin said “including deferrals” what it meant was deferrals from subsequent years, not previous years.
But what about the Treasury? Still no response. I’ll keep pressing them but in the absence of a reply we’re left to draw the conclusion that it is happy with the manner in which Barclays has responded to Merlin – and that it is happy that this bank spent a greater share of its revenues in 2010 on rewarding its employees than it did in 2009.Tagged in: barclays, bonuses, deferrals, Treasury
Latest from Independent journalists on Twitter