Barclays owns up on BZW pay

Head of former investment banking subsidiary did receive pounds 5m for 13 months' work

BARCLAYS, which sold its investment bank BZW last year, will reveal on Wednesday that it paid Bill Harrison, the former BZW chief executive, about pounds 5m during his 13-month tenure.

The bank's 1997 annual report will show Mr Harrison made a salary of about pounds 1m in nine months last year, according to a source familiar with the remuneration package. However, it will also show that he did not receive a pounds 5m departure bonus, as has been rumoured.

Barclays decided last October to sell BZW because it could not justify the capital expenditure it needed to compete with global businesses being created by mergers, such as Salomon Smith Barney.

Mr Harrison, who joined in September 1996, resigned when the announcement was made and has since become vice-chairman of Deutsche Morgan Grenfell at what is described by Deutsche as a much lower package.

"The pounds 5m figure that has been quoted in some papers is almost on the button if it describes what he received for joining, working here and for leaving," said the source.

Mr Harrison's pay outraged shareholders at last year's annual general meeting. It also raised eyebrows in the City, where Mr Harrison is known as "Atilla the Brum" because of his rough management style and Birmingham accent.

The pounds 5m in earnings breaks down as: pounds 2.85m in salary and bonuses in 1996; pounds 150,000 in an executive share award scheme from 1996; about pounds 1m worth of options awarded in 1996, assuming the share price is about pounds 17; and about pounds 1m in salary and benefits in 1997.

Barclays previously said the pounds 2.85m it paid Mr Harrison in the last four months of 1996 comprised pounds 100,000 in salary, pounds 1.5m in benefits and pounds 1.25m in cash bonuses.

Martin Taylor, Barclays chief executive, has said the bonuses were designed to compensate Mr Harrison for those he lost by leaving his former job with Robert Fleming.

The 1996 annual report shows Mr Harrison was awarded 133,000 options that can be exercised at pounds 9.07 each, although it did not state their value. The source said they are worth pounds 1m at a share price of pounds 17. The shares stood at pounds 16.18 on 31 December and closed on Friday at pounds 18.36.

Mr Taylor hired Mr Harrison, 49, to build BZW into a global investment bank, impressed by his reputation for driving employees and shaking up organisations.

In the weeks after Mr Harrison joined, the former deputy chief executive, Donald Brydon, resigned, and entire teams of bankers were dismissed to make way for new ones hired from rivals.

Mr Harrison was lured away from Robert Fleming, where he was head of investment banking. Before joining Robert Fleming in 1993, he had spent eight years at Lehman Brothers.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Content Writer - Global Financial Services

£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Web Developer - PHP

£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...

Recruitment Genius: Field Sales Consultant - Financial Services - OTE £65,000

£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...

Recruitment Genius: Loan Underwriter

£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...

Day In a Page

A nap a day could save your life - and here's why

A nap a day could save your life

A midday nap is 'associated with reduced blood pressure'
If men are so obsessed by sex, why do they clam up when confronted with the grisly realities?

If men are so obsessed by sex...

...why do they clam up when confronted with the grisly realities?
The comedy titans of Avalon on their attempt to save BBC3

Jon Thoday and Richard Allen-Turner

The comedy titans of Avalon on their attempt to save BBC3
The bathing machine is back... but with a difference

Rolling in the deep

The bathing machine is back but with a difference
Part-privatised tests, new age limits, driverless cars: Tories plot motoring revolution

Conservatives plot a motoring revolution

Draft report reveals biggest reform to regulations since driving test introduced in 1935
The Silk Roads that trace civilisation: Long before the West rose to power, Asian pathways were connecting peoples and places

The Silk Roads that trace civilisation

Long before the West rose to power, Asian pathways were connecting peoples and places
House of Lords: Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled

The honours that shame Britain

Outcry as donors, fixers and MPs caught up in expenses scandal are ennobled
When it comes to street harassment, we need to talk about race

'When it comes to street harassment, we need to talk about race'

Why are black men living the stereotypes and why are we letting them get away with it?
International Tap Festival: Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic

International Tap Festival comes to the UK

Forget Fred Astaire and Ginger Rogers - this dancing is improvised, spontaneous and rhythmic
War with Isis: Is Turkey's buffer zone in Syria a matter of self-defence – or just anti-Kurd?

Turkey's buffer zone in Syria: self-defence – or just anti-Kurd?

Ankara accused of exacerbating racial division by allowing Turkmen minority to cross the border
Doris Lessing: Acclaimed novelist was kept under MI5 observation for 18 years, newly released papers show

'A subversive brothel keeper and Communist'

Acclaimed novelist Doris Lessing was kept under MI5 observation for 18 years, newly released papers show
Big Blue Live: BBC's Springwatch offshoot swaps back gardens for California's Monterey Bay

BBC heads to the Californian coast

The Big Blue Live crew is preparing for the first of three episodes on Sunday night, filming from boats, planes and an aquarium studio
Austin Bidwell: The Victorian fraudster who shook the Bank of England with the most daring forgery the world had known

Victorian fraudster who shook the Bank of England

Conman Austin Bidwell. was a heartless cad who carried out the most daring forgery the world had known
Car hacking scandal: Security designed to stop thieves hot-wiring almost every modern motor has been cracked

Car hacking scandal

Security designed to stop thieves hot-wiring almost every modern motor has been cracked
10 best placemats

Take your seat: 10 best placemats

Protect your table and dine in style with a bold new accessory