Barclays' boss Bob Diamond pockets £6.3m pay packet

 

Barclays' boss Bob Diamond is to pocket a £6.3 million pay packet for 2011, sparking more anger over the scale of rewards in the City.

The chief executive's total pay includes a £1.35 million salary, a bonus of £2.7 million and long-term incentives of £2.2 million.

His bonus was 80% of the total entitlement after the bank reported a 3% fall in profits to £5.9 billion in 2011, while the payment protection insurance scandal also affected his award.

The bonus is less than the £6.5 million he received last year, but the pay-out will anger critics after the bank was last week accused by HMRC of trying to avoid paying more than £500 million in tax, in schemes described as "highly abusive" dodges.

As well as his £6.3 million total pay-out for 2011, Barclays also paid Mr Diamond a £5.7 million 'tax equalisation charge' after he moved from the US to the UK to take on the chief executive's role.

Mr Diamond's £2.7 million bonus will not be paid in cash but in shares, which will vest in three years' time. And the deal will be subject to 'clawback', which means Barclays will be able to reduce the pay-out if any problems come to light before the pay-out.

His bonus was not affected by the HMRC's tax avoidance claims, which Barclays said will be taken into consideration for his pay-out in 2012.

However, the chief executive was not the highest paid member of staff at the bank. Two other unnamed executives, thought likely to be Rich Ricci and Jerry del Missier, who jointly run its investment banking divisions, received total pay-outs of £6.7 million and £6.5 million.

The bank, which has already come under fire for not reducing bonus payments enough, also revealed that the average bonus for employees at its investment banking arm Barclays Capital was down 30% to £64,000, despite a 32% fall in profits at the arm.

While Mr Diamond will not receive the majority of his £6.3 million pay-out for another three years, he has still pocketed some £15.1 million during 2011 as previous schemes bore fruit.

This included more than £1 million in pension and other perks, £4.8 million from previous long-term incentive schemes, while a separate executive award scheme also paid out some £7.8 million.

He is also set to receive a further £2.35 million from May as part of contingent capital plan award made in 2011.

TUC general secretary Brendan Barber said of today's award: "This bonus epitomises how banks have failed the wider economy and got away with it.

"People are sick of seeing money that should be spent supporting businesses being lavished on the very people that brought our economy to its knees a few years ago.

"Ministers must do more to force banks to prioritise supporting the real economy over enriching their senior staff."

Spokesman for the Robin Hood Tax campaign David Hillman said: "The pockets of Bob Diamond and his fellow bankers are busting at the seams from their multi-million pound pay packets, whilst the Exchequer is being left short by the bank's tax avoidance measures.

"The Government's stand-off approach to ensuring banks pay their fair share to society isn't working."

And shadow business secretary Chuka Umunna said Labour would repeat the bankers' bonus tax to create 100,000 jobs for young people.

PA

Suggested Topics
PROMOTED VIDEO
Arts and Entertainment
'New Tricks' star Dennis Waterman is departing from the show after he completes filming on two more episodes
tvOnly remaining original cast-member to leave long-running series
Arts and Entertainment
Game Of Thrones
Uh-oh, winter is coming. Ouch, my eyes! Ygritte’s a goner. Lysa’s a goner. Tywin’s a goner. Look, a dragon
tvSpoiler warning:The British actor says viewers have 'not seen the last' of his character
Sport
The Etihad Stadium, home of Manchester City
premier league

The Independent's live blog of today's Premier League action

News
Rumer was diagnosed with bipolarity, attention deficit hyperactivity disorder and post-traumatic stress disorder: 'I was convinced it was a misdiagnosis'
peopleHer debut album caused her post-traumatic stress - how will she cope as she releases her third record?
Life and Style
Couples have been having sex less in 2014, according to a new survey
life
Voices
Holly's review of Peterborough's Pizza Express quickly went viral on social media
voices
News
ebooksAn unforgettable anthology of contemporary reportage
Sport
Radamel Falcao was forced to withdraw from the World Cup after undergoing surgery
premier leagueExclusive: Reds have agreement with Monaco
Arts and Entertainment
musicBiographer Hunter Davies has collected nearly a hundred original manuscripts
Sport
A long jumper competes in the 80-to-84-year-old age division at the 2007 World Masters Championships
athletics
Arts and Entertainment
tvReview: 'Time Heist' sees a darker side to Peter Capaldi's Doctor
Life and Style
Walking tall: unlike some, Donatella Versace showed a strong and vibrant collection
fashionAlexander Fury on the staid Italian clothing industry
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

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam