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By Steve Slater
LONDON, April 25 (Reuters) - Barclays promised arigorous review of executive pay on Thursday, as shareholders atthe bank's annual meeting criticised the new management,unconvinced that the paying of big bonuses will be abandoned aspart of a new ethical drive.
Chief Executive Antony Jenkins, drafted in last year to tearup Barclays' profits-at-all-costs culture, told shareholders itwould take time for them to see the benefits of hismulti-billion-pound overhaul.
But evidence of patience was thin on the ground at thecompany's annual general meeting in London's Royal FestivalHall.
"'Go-To' bank? Go to hell Barclays. I don't understand whyanyone needs 1 million pounds and anyone who asks for more is agreedy bastard. The banks have brought us down, brought thewhole economy down," said Joan Woollard, 75, from Lincolnshire,who said she bought five shares to attend the AGM.
Her comments were applauded and echoed by others.
Jennifer Cramer, a small investor, said talk of payrestraint at previous AGMs were shown to be "a sham" afterAlison Carnwath, former head of remuneration, last year quitafter disagreeing with the board on the bonus for Jenkins's precedessor Bob Diamond.
Jenkins has promised to overhaul Barclays' standards andculture in trying to make it the 'Go-To' bank of choice anddevelop a more open relationship with regulators and customersafter costly scandals involving rate-fixing, product mis-sellingand big bonuses ousted Diamond and saw the once-venerableBarclays brand pilloried in the media and in parliament.
Institutional investors, who hold the vast bulk of Barclays'shares, are broadly supportive of Jenkins' plans and were expected to vote through a resolution on pay tabled at the AGM.The results of all voting were due to be announced later.
"We were originally thinking about abstaining on theremuneration report but I personally thought that as they are moving in the right direction, that we would support them, andif they don't continue to change, we will vote against them,"said one top-20 investor, who declined to be named.
"That sends the right message without encouraging morebanker bashing. That does need knocking on the head because ithas gone on for way too long."
Jenkins said that shareholders would have to wait until 2015to see a real return from their investment as he closesprofitable businesses and axes thousands of staff.
"We will not achieve a return over the current cost ofequity until 2015 and cultural change of the scale we arelooking at will take time," he said. "This might not be whatpeople want to hear but it's realistic."
Barclays' cost of equity is currently 11.5 percent.
Barclays' shares were down nearly around 0.3 percent at 294pence on Thursday. It fell over 1 percent on Wednesday when thebank said investment banking generated most of its first-quarterprofits.
The investment bank is being pared back as part of Jenkins'reforms.
A MULTI-YEAR JOURNEY
A report commissioned by Barclays and written by veteranlawyer Antony Salz said earlier this month that the bank's rapidtransformation from domestic retail lender to global universalbank created a sprawling set of businesses, each with their ownculture, and an emphasis on profit, sometimes at all costs.
Salz also said pay for the top 70 executives at Barclays wasconsistently above the average at other banks. The bank has beencondemned by politicians for paying 428 of its employees onemillion pounds or more in 2012.
In response to the Salz report, Barclays said on Thursday itwould rein in executive pay.
"The remuneration committee recognises that these are notone-off changes and that the path to reposition our remunerationis a multi-year journey," the bank said in a statement.
The board and remuneration committee will consider changes"to ensure the rigorous review of remuneration proposals forhigh earners," it said, and promised more simplicity andtransparency for long-term share awards.
Jenkins has pushed out executives associated with theDiamond era, including Rich Ricci, the head of the investmentbank, who collected a $26 million bonus last month.
Ricci, famed for wearing a broad-brimmed felt hat and loudchecked suit while watching his racehorses compete, responded tomedia criticism by naming one of his horses "Fatcatinthehat".
Barclays has said it will now ensure shareholders get anincreased share of income and pre-compensation profits.
Compensation swallowed 41 percent of the investment bank'sincome in the first quarter, down from 43 percent a year ago butabove Jenkins's target of cutting it to near 35 percent.
Jenkins opted not to take a bonus for 2012. He got a packageworth 2.6 million pounds, including shares awarded under along-term incentive plan. His predecessor, Diamond, took home 17million pounds in 2011.
In a nod to criticism that executives or board members didnot stand up enough to Diamond, the Barclays report also saidaction would be needed to ensure that "the role of the CEO inencouraging open debate and challenge is fulfilled".
In other changes, branch-based staff will not longer getcommissions on sales, Barclays will publish an updated code ofconduct and all employees will have to attend a course on thecompany's new values.
