The chief executive officer of Barclays, a prominent banking institution, is facing criticism for advocating for restrictions on salary increases for diligent public sector employees while his own compensation skyrocketed to £10.5 million last year, more than double his previous earnings.
CS Venkatakrishnan, also known as Venkat, has been labeled as displaying “rank hypocrisy” by the Trade Union Congress (TUC) for his comments urging the government to control public sector pay growth. Despite his statements, Venkat’s own remuneration surged by 127% last year, reaching over £10.5 million, including £7 million in bonuses on top of his £3 million annual salary.
Critics, including TUC’s general secretary Paul Nowak and GMB National Secretary Rachel Harrison, have condemned Venkat’s stance, highlighting the essential role of public sector workers in society and questioning the fairness of his significant pay increase while advocating for restrictions on others.
Luke Hildyard, the director of the High Pay Centre, emphasized the discrepancy between Venkat’s substantial earnings and his call to limit pay rises for public sector workers. Hildyard suggested that imposing a wealth tax on the super-rich, including individuals like Venkat, could provide a more sustainable solution to funding decent wages for public sector employees.
Since assuming the role of Barclays’ group chief executive in November 2021, Venkat has accumulated over £20 million in total compensation. In an interview with the Financial Times, he urged ministers to address wage inflation in the UK economy, particularly in the public sector.
Data from the Office for National Statistics revealed higher wage growth in the public sector compared to the private sector in recent months, prompting discussions around the disparity in pay increases between the two sectors. Additionally, Venkat cautioned against imposing tax hikes on banks in the upcoming Budget, citing existing tax burdens on UK financial institutions.
Campaigners have proposed a windfall tax on major banks in the UK to generate additional revenue for the government, with figures suggesting substantial potential income from such a tax. Former Chancellor Jeremy Hunt’s recent adjustments to bank surcharges have sparked further debate on the taxation of financial institutions, with calls for a more substantial surcharge to enhance tax revenues from major banks.