Barclays Boosts MD Bonuses to £900k Amid Challenging Year for Bankers
Barclays has announced significant bonus increases for its managing directors (MDs) amid a challenging year for investment banking. According to their fourth-quarter results, material risk takers at Barclays received an average bonus of £900,000 for the year 2025, the highest in six years.
Bonus Distribution and Compensation
Despite underwhelming performance indicators in the investment banking sector, Barclays’ investment bank has rewarded its staff generously. The bank employs 1,465 material risk takers, with a total bonus payout of £732 million ($1 million), amounting to an average of £901,000 each.
Compensation Breakdown
- Average bonus for 2025: £900,000
- Average salary for MDs: £652,000
- Total average compensation package: £1.6 million
Performance Metrics
While the bonuses reflect a significant increase from the average of £557,000 six years ago, the overall performance of Barclays’ investment bank has been modest. Key figures from the past year include:
- M&A fees rose by only 2%.
- Equity capital markets fees fell by 21%.
- Debt capital markets fees increased by 1%.
These results contributed to a decline in the bank’s global share of investment banking fees from 3.3% in 2024 to 3% in 2025.
Future Aspirations
Barclays is pivoting towards an advisory-based model, aiming to grow its investment banking operations. The bank projects an increase in its global market share of investment banking fees to 3.5% by 2028.
Performance of Other Departments
While investment bankers faced challenges, other sectors performed well. Salespeople and traders managed to maintain a 6.5% share of global revenues. Notable strengths were reported in macro, securitized products, credit trading, and prime financing.
Top Earners
The distribution of bonuses was not uniform across the bank. Noteworthy statistics include:
- 762 employees earned over €1 million last year.
- 89 employees earned over €3.9 million, an increase from 60 in 2024.
- One individual earned between €17 million and €18 million.
Despite the investment bank’s struggles, Barclays has upheld a commitment to rewarding excellence among its top performers.
