Banking giant Barclays has slashed the bonus pot for its investment banking arm by 32 per cent amid mounting pressure over the controversial payments.
The announcement comes as Barclays posted a pre-tax profit for 2011 of £5.8 billion, a drop of 3 per cent on 2010.
The average bonus for staff was cut by 30 per cent to £64,000 as the total pool was slashed to £1.5 billion.
The maximum cash bonus was capped to £65,000, as opposed to £2,000 at the major taxpayer-backed banks.
The bonus cut is in line with a dip in the division's profits to £2.96 billion, a drop of 32 per cent.
In total, the banking group's bonus pool was down 25 per cent, with an average payout of £15,200, a drop of 21 per cent.
Chief executive Bob Diamond refused to be drawn over his own bonus, amid reports he could receive over £11 million in payouts.
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