John McFarlane says he would scrap current bonus system for bankers and replace it with a scheme that rewards long-term performance

Barclays’ chairman believes investment bankers should not get huge bonuses, as they encourage bad behaviour and short-term thinking.

John McFarlane said that in an ideal world he would like to see the current situation abolished and replaced with a longer-term system.

However, as that is unlikely to happen, he said Barclays will instead have to save money by working with as small a number of investment bankers as possible.

“I used to run the markets side of various institutions and I was never paid anything close to anything people get paid in these areas now,” Mr McFarlane said, speaking at the British Bankers’ Association annual conference.

“If I had my own way, and this can never happen, I would reward people at the end, once you know the results sometimes three or five years down the road.

“At least you are then rewarding them for what you know in terms of the value they have created.”

Source: Big bonuses breed bad behaviour, says Barclays chairman - Telegraph

Oh really?