No more big bonuses for banks - compensation, however...

Honestly, you'd think that bankers would be feeling just a little bit embarrased at the moment (an many I know are). Not so for Anthony Jenkins, CEO of Barclaycard! The Times reports today "The chief executive of Barclaycard, Antony Jenkins, was paid several million pounds in compensation for not receiving a promotion that he had been promised"

Words almost fail me.
Almost.

Compensation for what? For hurt feelings? For a business reappraising its position and its staff?

Maybe take him out for a nice meal to soften the blow but....

This payment looks suspiciously like a bonus to me - and the beauty is it doesn't need to be approved by the remuneration committee as a.) it would not be classed as remuneration, but compensation, and, more importantly b.) as he has not been promoted to the board, and is therefore not a director of Barclays he would not be subject to them.

What then happens if he is subsequently promoted to the board (which I suspect in time he would be). Will he have to pay it back? I suspect not!

The report goes on to note "Mr Jenkins, who is seen as one of Barclays’ rising stars, negotiated compensation of several million pounds for not being put on the executive committee"

I just can't imagine how that conversation must have gone.

I do know that in situations such as these there is a significant disparity of passion. To Mr Jenkins, that conversation must have meant a lot (several million pounds if the Times is to be believed), however, to the individuals awarding it, what do they care? Its a drop in the ocean next to the £2.98bn profit disclosed for its interim results recently - its not their money.

I hope its shareholders slap the board in the face for this one

I can imagine what my bosses in the past would have said for demanding compensation

Even if we accept (and I emphatically do not) that compensation is required or justified. Several million pounds? Just how much more was he expecting to be on as a member of the board?

The combined code (which all plcs should be adhering to, and if not reporting on (so called 'comply or explain', toothless state of affairs)) states "All directors should be subject to election by shareholders at the first opportunity after their appointment, and to re-election thereafter at intervals of no more than three years."

So firstly - the board should not be able to provide compensation for a decission that was not in their control, but the shareholders of the company. The compensation rather suggests that it was a done-deal, in which case the board are guilty of some sort of corruption by the tacit implication that shareholders can be bypassed or manipulated

Secondly - Mr Jenkins payout was 'several million'. Taking the lowest several I can think of - £2m, this would equate, over the three years that he could then serve, before re-election to a further £667k in salary for each of these years.

Honestly - feel some shame Mr Jenkins
As for the board - seems to me you are either weak or corrupt (perhaps both?)