The chief executive officer of Barclays, a major banking corporation, is facing criticism for suggesting the government should limit salary increases for dedicated public sector workers, despite his own compensation more than doubling to £10.5 million last year.
CS Venkatakrishnan, also known as Venkat, has been accused of hypocrisy by the Trade Union Congress (TUC) for his remarks, which they labeled as insensitive. Venkatakrishnan reportedly emphasized the need to control government spending and reduce the growth of public sector wages.
While advocating for curbing wage inflation, Venkatakrishnan’s own remuneration surged by 127% last year, escalating from £4.6 million to over £10.5 million, inclusive of over £7 million in bonuses on top of a £3 million annual salary. Earlier this year, Barclays expressed intentions to provide its CEO with a substantial pay raise, arguing that his current compensation is insufficient.
The TUC’s general secretary, Paul Nowak, criticized Venkatakrishnan for overlooking the challenges faced by public sector workers, such as nurses, teachers, and paramedics, amid a recruitment and retention crisis. Nowak highlighted the importance of public services in sustaining the economy and called on affluent individuals and entities, like Venkatakrishnan and financial institutions, to contribute equitably towards funding essential services.
Rachel Harrison, National Secretary of GMB, condemned Venkatakrishnan’s actions as hypocritical, stressing the vital role of public sector workers in society. Similarly, Luke Hildyard, director of the High Pay Centre, questioned the credibility of someone receiving a £10.5 million package to comment on the wage prospects of public sector employees, suggesting that taxing the wealthy more effectively could support fair wages for public workers.
Venkatakrishnan assumed the role of Barclays’ group chief executive in November 2021, accumulating over £20 million in remuneration since then. He emphasized the need for restraint in public sector wages and warned against excessive taxation on banks, citing concerns about the sustainability of public finances.
Although public sector wage growth outpaced that of the private sector, Venkatakrishnan cautioned against tax hikes on financial institutions, affirming the significance of London as a global financial hub. Campaigners have proposed a windfall tax on major UK banks to generate substantial revenue for the government.
In a bid to promote economic growth, former Chancellor Jeremy Hunt reduced a bank surcharge in the recent autumn statement, while advocacy groups like Positive Money advocate for a higher surcharge to boost government revenue from major banks. Positive Money estimates that implementing a 38% surcharge could yield over £11 billion annually from the Big Four banks based on their financial performance.
Overall, the debate over executive compensation, public sector wages, and corporate taxation underscores ongoing challenges in balancing economic priorities and social equity.
