There is a flaw in the argument proffered this week by Antony Jenkins, the chief executive of Barclays, to justify lifting staff bonuses in spite of collapsing profits. That matters not only to the 140,000 employees of the bank, but also to the 690,000 small shareholders.
Most have stuck by the bank over the seven years of the banking crisis, seeing the capital value of their shares drop by two thirds and their dividends dive by 81 per cent. Many even put in more money in the rights issue last October. In return, the bank has steadily promised them jam tomorrow while bestowing jam today on the executives and staff.
Mr Jenkins argues that pay rates are shooting up for some investment bankers in