Barclays chiefs’ pay fears

BARCLAYS was desperate to avoid a state bailout so it could continue paying huge bonuses to staff, board minutes recorded during the financial crisis show.

Bosses feared ministers would restrain pay, fuelling an exodus of top staff.

Documents at a fraud trial in Southwark Crown Court show high pay was of utmost importance, playing a key role in Barclays’ decision to raise private funds instead.

The court was shown board minutes from October 2008, when the financial system was reeling and the Treasury wanted to bail out all the large UK banks.

They said: ‘The board ... noted there would inevitably be constraints placed on the bank related to dividends, operational flexibility and executive compensation.’ The evidence will spark fears that staff were only looking out for their own pay.

Marcus Agius, bank chairman at the time, passionately defended high pay.

Giving evidence as a witness in the trial of Barclays executive Roger Jenkins, former chief executive John Varley and their colleagues Richard Boath and Tom Kalaris, he said: ‘If a bank had a particularly talented banker, it would be most unusual for him or her not be offered more money by another bank to go and work for them.’

Prosecutors allege the four men illegally authorised secret payments to get Qatari investors to pump cash into Barclays. They deny the charges. The case continues.