The head of the prominent financial institution Barclays is facing criticism for advocating a limit on salary increases for diligent public sector employees while his own compensation soared to £10.5 million last year, more than double the previous amount.
CS Venkatakrishnan, also known as Venkat, has been labeled as displaying “rank hypocrisy” by the TUC. He was reported to have stated to the Financial Times the necessity to control government spending and restrain the growth of public sector wages.
Despite calling for wage inflation to be curbed, Venkatakrishnan’s own remuneration saw a substantial 127% increase last year, reaching over £10.5 million, which included bonuses exceeding £7 million in addition to a £3 million annual salary. Earlier this year, Barclays expressed its intention to potentially significantly raise the CEO’s pay, arguing that his current compensation is insufficient.
TUC’s general secretary Paul Nowak criticized Venkatakrishnan’s remarks as out of touch, highlighting the disparity between the CEO’s substantial pay hike and his call for public sector workers to tighten their belts amidst recruitment and retention challenges in essential services.
Rachel Harrison, National Secretary of GMB, condemned the CEO’s actions as hypocritical, emphasizing the vital role public sector workers play in society and questioning Venkatakrishnan’s moral authority to advocate against their salary increases.
Since his appointment as Barclays’ group chief executive in November 2021, Venkatakrishnan has received over £20 million in total pay, bonuses, and benefits. The Financial Times reported his advice to government officials to mitigate wage growth in the public sector and highlighted concerns about wage inflation across the UK economy.
Statistics from the Office for National Statistics indicate that public sector wage growth was 5.7% from April to June, surpassing the private sector’s 4.8%. However, private sector salaries had significantly outpaced public sector earnings for a considerable period since early 2021.
Venkatakrishnan also cautioned against imposing tax hikes on banks in the upcoming Budget, citing the already higher tax burden on UK banks compared to other financial centers. Campaigners propose implementing a windfall tax on major banks, potentially generating over £11 billion annually for the Treasury.
Former Chancellor Jeremy Hunt reduced a bank surcharge in the latest autumn statement, but advocacy groups like Positive Money advocate for a new surcharge to generate significant revenue from major banks. They estimate that a 38% surcharge could bring in £11.3 billion from the Big Four banks based on their recent financial performance.
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