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Business News

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.