By Steve Slater
LONDON, Nov 22 (Reuters) - Britain's Barclays is togive senior bankers an additional monthly payments next year tocounter the industry cap being introduced by the EU to curb theexcessive risk-taking it says helped to trigger the 2008-09financial crisis.
Under the plan, Barclays will introduce a "role-based pay"element - on top of base salary and variable bonuses - foremployees occupying specific risk-taking roles.
Other banks are expected to consider adopting a similarstructure as a way to keep some flexibility on pay and stillcome in under the European Union bonus rules, which come intoeffect in January and affect all staff for EU banks and theEuropean staff of those outside the trading bloc.
An internal memo sent to Barclays investment bankers onThursday said that the new element of fixed pay will be set atthe start of the year for any employee affected by the EU's newrule, which caps bonuses at double base salary.
"The introduction of role-based pay allows Barclays both tocomply with the legislation and offer market-competitivecompensation to employees," a copy of the memo seen by Reuterssaid.
"This outcome has been reached following consultation withour regulator and major shareholders," it added.
The British government and many banks in London have opposedthe cap, saying it will force up fixed salaries, provide lessscope to claw back pay and could result in staff joining rivalsnot constrained by the rules.
Barclays is expected to be affected most among Britain'slenders because it has the biggest investment bank. But EUrivals, such as Deutsche Bank, and other overseasbanks with big London operations, such as JPMorgan,Goldman Sachs and UBS, will also be affected.
Authorities have not said how many staff will be affected.It could be all those earning more than 500,000 euros ($676,200)a year and is expected to extend beyond the current definitionof "code staff" in Britain, which covers all people insignificant risk-facing positions.
Barclays' new plan is expected to affect hundreds ratherthan thousands of staff, a person familiar with the matter said.
Last year the bank had 393 code staff and 1,338 staffearning more than 500,000 pounds a year.
The new "role-based" payment will not be included in pensioncalculations and could rise or fall depending on demand for aparticular role, or it could be removed if the employee moves toa different role, the Barclays memo said.
The bank will ask for shareholders to approve paying themaximum bonus of two times fixed pay at its annual shareholdermeeting in April, the note added.
The EU is also considering allowing bonuses of 250 percentof salary, provided that much of it is deferred.
Barclays (BARC)
