Barclays and HBoS face pay revolts

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The Independent Online

Barclays and HBoS face opposition from shareholders over the pay packages of their senior executives following accusations that their bonuses are "potentially excessive".

Pirc, the pension fund consultants, is urging shareholders to vote against Barclays' remuneration package at its AGM on Thursday next week. Pirc said Barclays had "not disclosed limit in its annual bonus scheme and no cap in its share option plan".

The structure of the scheme could lead to very large windfalls for Barclays' senior directors for performing well but not exceptionally, Pirc said.

Separately, HBOS may also face criticism over pay after Pirc recommended shareholders abstain in the vote on its remuneration resolutions on the basis that its bonus structure does not have sufficiently demanding performance criteria.

"Salaries ought to be for doing a job reasonably well. Bonuses should be for going over and above that. There should be limited leverage in the bonus scheme otherwise you just continue on an upwards spiral," a spokesperson for Pirc said.

Barclays' chief executive, Matt Barrett, last year received £3.2m, including a £1.9m cash bonus.