Barclays caps bonuses at £65,000

 

Barclays announced on Friday that it was capping cash bonuses at £65,000 as it reported a 3% fall in profits to £5.9bn. The bank also admitted it may miss the targets it had set itself for making returns to shareholders. Providing more detail about bonuses than usual, the bank said that the value of bonus per group employee was down 21% year on year to £15,200, while the average value of bonus per employee at Barclays Capital, its investment banking arm, was down 30% to £64,000 - just below the value of the cap. The bank said that annual bonuses for executives and its eight highest paid employees were down 48%. Chief executive Bob Diamond received a bonus in shares of £1.8m in 2010 so, if he is in line with the average, this might indicate that his bonus would be around £900,000. Barclays shares were down 3% at 225.9p in early trading. But the bank admitted that its return on equity was just 6.6% in 2011 - down from 8.8% the year before and well below the target of 13% set by Diamond. "Since setting the target the worse than predicted macro economic conditions, in addition to new regulatory constraints, mean that we may not be able to deliver 13% returns by 2013," the bank said. "We are not satisfied with the return on equity we delivered in 2011 and are committed to delivering steady improvement moving forwards. Our rock solid capital, liquidity and funding positions provide us with the flexibility and confidence to meet the economic and regulatory challenges ahead," Diamond added.

charity worker employed by one of David Cameron’s Big Society gurus has been arrested on suspicion of smuggling cocaine with a street value of £120,000

charity worker employed by one of David Cameron’s Big Society gurus has been arrested on suspicion of smuggling cocaine with a street value of £120,000 into Britain.

Former US gang member Derrick ‘Anthony’ Mitchell was held at Heathrow this month after UK Border Agency officers allegedly discovered 3kg of drugs in his luggage. 

Mitchell, 37, is a duty manager at the South London-based Kids Company founded by charity boss Camila Batmanghelidjh. She set it up in 1996 to care for abused, neglected or  abandoned children in London’s inner-city communities. 

She has been described as ‘Britain’s most colourful charity leader’ because of her style, dress sense and selfless approach to charity work. 

The award-winning author and campaigner was invited  to 10 Downing Street last year. 

She also advises former Tory leader Iain Duncan Smith and is thought to be one of the inspirations behind Mr Cameron’s pledge to ‘hug a hoodie’. 
Ms Batmanghelidjh spoke of her shock at the allegations surrounding Mr Mitchell, whom  she described as a ‘street-level youth mentor’.

She said: ‘Obviously, because the judicial process needs to take place, we cannot legally comment. The only thing I can say is that the alleged incident took place while he was on holiday in his own time.

‘At this stage I do not know enough to know the full details. But as a worker, he gave exceptional commitment to the kids over a number of years and I can never take that away from him. 

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As an organisation, we employ a range of people and a lot of them have had challenging backgrounds as children and we have given them chances. The majority of them go on to do incredibly well.

‘In the situation of this individual, if what is alleged has occurred, he has made an abhorrent choice and I do not agree with it.’ 

Camila Batmanghelidjh said she was shocked at the allegations surrounding Mr Mitchell, claiming he gave 'exceptional commitment to the kids'

Mitchell, of Camberwell, south London, was arrested at Heathrow on October 6 and remanded in custody by Uxbridge magistrates the next day. He will reappear in court in the next month. 

The university undergraduate has previously spoken of deciding to rebuild his life after leaving a violent street gang in Miami.

He claimed he had earlier sold drugs and lost a family member to violence at the age of 19 when his sister bled to death after being stabbed in a leg.

After coming to Britain in his 20s, he began working with the charity about five years ago, attempting to convince youths in gangs to turn their back on crime. 

Kids Company operates from three centres in Southwark, Lambeth and Camden in London, as well as working in 37 inner-city schools.

It employs more than 600 people in full and part-time roles to reach out to 14,000 children from the capital’s most deprived and crime-ridden areas. 

Many of the youngsters live with  parents who are unable to care  for them and have had severely troubled lives.