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
Sport
sportWWE latest including Sting vs Triple H, Brock Lesnar vs Roman Reigns and The Undertaker vs Bray Wyatt
Arts and Entertainment
Louis Theroux: By Reason of Insanity takes him behind the bars again
tvBy Reason of Insanity, TV review
Arts and Entertainment
Cassetteboy's latest video is called Emperor's New Clothes rap
videoThe political parody genius duo strike again with new video
Arts and Entertainment
tvPoldark, TV review
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Retirement Coordinator - Financial Services

Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...

Recruitment Genius: Annuities / Pensions Administrator

Negotiable: Recruitment Genius: You will be the first point of contact for all...

Ashdown Group: HR, Payroll & Benefits Officer - Altrincham - up to £24,000.

£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...

Ashdown Group: Learning and Development Programme Manager

£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...

Day In a Page

Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat
Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

Saudi airstrikes are fuelling the Gulf's fire

Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

The only direction Zayn could go

We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

Spells like teen spirit

A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

If fashion is a cycle, this young man knows just how to ride it

British designer Jonathan Anderson is putting his stamp on venerable house Loewe
Number plates scheme could provide a licence to offend in the land of the free

Licence to offend in the land of the free

Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

From farm to fork in Cornwall

One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
Robert Parker interview: The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes

Robert Parker interview

The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes
Don't believe the stereotype - or should you?

Don't believe the stereotype - or should you?

We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor
How to make your own Easter egg: Willie Harcourt-Cooze shares his chocolate recipes

How to make your own Easter egg

Willie Harcourt-Cooze talks about his love affair with 'cacao' - and creates an Easter egg especially for The Independent on Sunday
Bill Granger recipes: Our chef declares barbecue season open with his twist on a tradtional Easter Sunday lamb lunch

Bill Granger's twist on Easter Sunday lunch

Next weekend, our chef plans to return to his Aussie roots by firing up the barbecue
Joe Marler: 'It's the way I think the game should be played'

Joe Marler: 'It's the way I think the game should be played'

The England prop relives the highs and lows of last Saturday's remarkable afternoon of Six Nations rugby
Cricket World Cup 2015: Has the success of the tournament spelt the end for Test matches?

Cricket World Cup 2015

Has the success of the tournament spelt the end for Test matches?
The Last Word: Justin Gatlin knows the price of everything, the value of nothing

Michael Calvin's Last Word

Justin Gatlin knows the price of everything, the value of nothing