The head of major banking institution Barclays is facing criticism for advocating government restrictions on pay increases for diligent public sector employees, while his own compensation more than doubled to £10.5 million last year, leading to accusations of “rank hypocrisy.”
CS Venkatakrishnan, also known as Venkat, has been labeled as tone-deaf by the TUC for his comments urging cost control at the government level and pushing for limitations on public sector wage hikes. Despite his calls for wage inflation restraint, his personal remuneration skyrocketed by 127% in the past year, soaring from £4.6 million to over £10.5 million.
Venkat’s substantial package included bonuses exceeding £7 million, in addition to a £3 million annual salary. Earlier this year, Barclays expressed intent to grant its CEO a substantial raise, arguing that his current compensation is insufficient.
TUC’s general secretary, Paul Nowak, criticized Venkat’s remarks, highlighting the disconnect between his significant pay rise and the financial constraints faced by public sector workers amid recruitment and retention challenges. Nowak emphasized the essential role of public services in sustaining the economy and called for fair contributions from wealthy individuals and corporations like Venkat and Barclays to support vital services.
GMB National Secretary, Rachel Harrison, condemned Venkat’s actions as hypocritical, emphasizing the indispensable contributions of public sector workers to the country’s well-being and expressing disgust at attempts to suppress their wages while benefiting from exorbitant pay packages.
Director of the High Pay Centre, Luke Hildyard, noted the incongruity of Venkat’s high earnings in comparison to his stance on public sector pay rises, suggesting that taxing the super-rich more effectively could facilitate better wages for essential workers.
Since assuming the role of Barclays’ group chief executive in November 2021, Venkat has accumulated over £20 million in pay, bonuses, and benefits. In an interview, he urged government action to address wage inflation not only in the public sector but across the UK economy.
Data from the Office for National Statistics revealed a 5.7% increase in average annual public sector wages between April and June, surpassing the 4.8% growth in the private sector. Venkat also cautioned against imposing tax hikes on banks in the upcoming Budget, citing the UK’s already high banking taxes compared to other financial centers.
Campaigners have proposed a windfall tax on the Big Four banks in the UK, estimating potential annual revenues of over £11 billion for the Treasury. Former Chancellor Jeremy Hunt reduced the bank surcharge in the recent autumn statement, but calls for a separate surcharge on the Big Four banks have emerged to generate additional revenue for public services.
Overall, the controversy surrounding Venkat’s statements reflects broader concerns about income inequality, fair taxation, and the financial well-being of essential workers in the public sector.