Higher bonuses at Barclays are a turn-off for investors | Business

Barclays has stirred opposition from investors with plans to increase investment bankers’ pay.

As it unveiled record pre-tax profits of £2.4 billion for the first quarter yesterday, the bank said that it would set aside £335 million to pay bonuses for the three-month period, reflecting increasing profits in the division.

The bonus payout is one of the reasons that Barclays said overall costs for the year would be higher than they were in 2020.

The news on costs led to shares in Barclays falling by 7 per cent, or 13¼p, to 175½p last night, despite the record quarterly profits.

Edward Firth, an analyst at Keefe, Bruyette & Woods, the broker, called it a “disappointing day” for the lender, which historically has been criticised for running