The chief executive officer of Barclays, a major bank, is facing criticism for advocating for a cap on wage increases for public sector workers while his own compensation more than doubled to £10.5 million last year.
CS Venkatakrishnan, also known as Venkat, received backlash from the Trade Union Congress (TUC) for his comments, which were described as out of touch. Venkat was quoted in the Financial Times stating the need to control government spending and restrain the growth of public sector salaries.
Despite his call for wage restraint, Venkat’s own pay and benefits surged by 127%, jumping from £4.6 million to over £10.5 million according to Barclays’ annual report. This increase included bonuses exceeding £7 million in addition to a £3 million salary.
The TUC expressed disbelief at Venkat’s remarks, highlighting the crucial role of public sector workers such as nurses, teachers, and paramedics in the country’s infrastructure. They emphasized the importance of fair contributions from wealthy individuals and corporations like Barclays to support essential services.
Critics like Rachel Harrison from GMB and Luke Hildyard from the High Pay Centre condemned Venkat’s stance, pointing out the irony of a multi-million pound salary recipient advocating against public sector pay rises. They suggested that taxing the ultra-rich could provide necessary funding for fair wages in the public sector.
Venkat, who assumed the position of Barclays’ group CEO in November 2021, has received over £20 million in total compensation since then. In his interview with the Financial Times, he advised the government to monitor public sector wages due to concerns about wage inflation across the UK economy.
While public sector wage growth outpaced the private sector at 5.7% between April and June, Venkat cautioned against tax hikes on banks, arguing that London’s financial sector should not be burdened with additional taxes for continued growth. Campaigners propose a windfall tax on major banks to generate significant revenue for the Treasury.
Former Chancellor Jeremy Hunt reduced the bank surcharge, and some organizations advocate for a higher surcharge to increase tax revenue from major banks. Positive Money estimates that implementing a 38% surcharge could yield £11.3 billion from the Big Four banks based on their performance in the first half of 2025.