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The Governor of the Bank of England called on banks to defer bonuses yesterday after Barclays was criticised for raising payouts despite falling profits.
Mark Carney declined to comment on individual banks, but said: "We think with compensation of bankers that a substantial proportion and an increasing proportion as they become more senior, as they take more risk, should be held back.
"You can call it a bonus, but we actually look at it a little differently. It should be held back, it should be deferred."
Mr Carney spelled out in no uncertain terms that the tradition of massive yearly cash handouts should be changed.
He said: "It should be deferred for a very long time and there should be the ability, and in fact we have the expectation, that the firm will take back that compensation if the individual is subsequently found to have taken risks that weren't well understood.
"We think more deferral and for a longer period of time is the right way to do it."
His comments come a week after Barclays Bank increased the amount it will hand out in 2014 by 10 per cent to £2.4 billion.
The bank declared the increase on the same day it brazenly confirmed plans to cut 12,000 jobs.
The bumper payout will see its 26,200 investment banking employees share out a £1.6bn bonus pot for 2013, up 13 per cent on 2012, giving an average payout of £60,100 per employee in the division.
Trade unions blasted the bank, with Unite saying the bonus increase will drive up pay for those already on "unimaginably high salaries" at the expense of ordinary staff working in local branches and call centres.