Barclays will impose a cap of £140,000 on cash bonuses for its investment bankers for 2013, a lower limit than last year, a person familiar with the matter said today.

Barclays has capped upfront cash bonuses for investment bank staff for the last three years, and the limit for 2013 is below the £185,000 allowed last year, the source said.

Barclays declined to comment.

Sky News, which first reported the cap, said Barclays will pay between £2.3 billion and £2.4 billion in incentive awards for 2013, which would be up to 11 per cent higher than 2012.

Other banks have also set limits on upfront cash awards and Deutsche Bank had capped cash bonuses at €300,000 for the last two years, sources said.

Barclays’ cap will not affect managing directors in the investment bank, who already have to fully defer their bonuses.

Barclays’ investment bankers were awarded bonuses of £1.3 billion last year, which was broadly evenly split between cash upfront, deferred cash and deferred shares awards. (Reuters)