KEY EMPLOYEES
Barclays share move ‘standard action’
The Institute of Directors in Southern Africa says share awards to retain key employees in times of change are not unusual
Barclays Africa’s decision to grant R191m in restricted-share awards to retain 74 key employees during the Barclays plc sell-down is standard action for a firm undergoing considerable change, says the Institute of Directors in Southern Africa. "It is not unusual to offer share-based incentives to senior executives as a retention mechanism in times of significant change," said Ray Harraway, chairman of the body’s remuneration committee forum. Incentive payments were commonly used to retain skills during large transactions, which created uncertainty for a business, said a reward expert. Many of these individuals would be doing additional work to disentangle and redeploy various systems across the bank, warranting extra pay, he said.
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