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Bumper pay rise for Barclays chief

The pay of Andrew Buxton, chairman of Barclays, rose 19 per cent last year to £523,000 after profit-related bonuses awarded by a remuneration committee chaired by Sir Denys Henderson, a member of the Greenbury committee on executive pay.

Mr Buxton also made a £135,000 paper profit on share options exercised during the year. Other options would give him a further profit of £450,000 at current prices.

The earnings rise came after trebled group profits, but a sharp fall at the BZW subsidiary, which halved the earnings of David Band, the group's highest paid director. Mr Band earned £776,000 excluding pension contributions, compared with £1.415m in 1993.

Barclays said "In 1994 the Barclays group achieved record profits and the strongest balance sheet for more than 10 years. The remuneration committee felt that this achievement should be reflected in the remuneration of the group's executive directors."

The bank's statement added that Mr Buxton had kept the shares after exercising his options, apart from those he sold to finance the option price.

The Barclays annual report contained a five page exposition of directors' earnings on the lines expected to be recommended by the Greenbury Committee.

It showed that Martin Taylor, the new chief executive earned £710,000, excluding pension contributions.

It also emerged that Mr Taylor has what amounts to a phantom option scheme, under which he is to be paid a bonus related to the value over a base price of 619p of 150,00 Barclays shares.

Last night's close was 22p above the base price, but the bonus is payable only between 1997 and 2004. Mr Taylor also has 196,900 options exerciseable from 1997 at a price of 544p.

Mr Taylor earned £204,000 in 1993, when he was a non-executive director for two months, including £180,000 paid to buy out options at Courtaulds Textiles.

The report shows large paper profits for several other directors with options.. Mr Band could make £368,000 profit at last night's price, and he has other options exerciseable in 1996 and 1997.