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
Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA special investigation by Andy McSmith
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: Software Development Manager

£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...

Ashdown Group: Product Manager - (Product Marketing, Financial Services)

£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...

Recruitment Genius: Compliance Assistant

£13000 per annum: Recruitment Genius: This Pension Specialist was established ...

Ashdown Group: Market Research Executive

£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...

Day In a Page

As in 1942, Germany must show restraint over Greece

As in 1942, Germany must show restraint over Greece

Mussolini tried to warn his ally of the danger of bringing the country to its knees. So should we, says Patrick Cockburn
Britain's widening poverty gap should be causing outrage at the start of the election campaign

The short stroll that should be our walk of shame

Courting the global elite has failed to benefit Britain, as the vast disparity in wealth on display in the capital shows
Homeless Veterans appeal: The rise of the working poor: when having a job cannot prevent poverty

Homeless Veterans appeal

The rise of the working poor: when having a job cannot prevent poverty
Prince Charles the saviour of the nation? A new book highlights concerns about how political he will be when he eventually becomes king

Prince Charles the saviour of the nation?

A new book highlights concerns about how political he will be when he eventually becomes king
How books can defeat Isis: Patrick Cockburn was able to update his agenda-setting 'The Rise of Islamic State' while under attack in Baghdad

How books can defeat Isis

Patrick Cockburn was able to update his agenda-setting 'The Rise of Islamic State' while under attack in Baghdad
Judith Hackitt: The myths of elf 'n' safety

Judith Hackitt: The myths of elf 'n' safety

She may be in charge of minimising our risks of injury, but the chair of the Health and Safety Executive still wants children to be able to hurt themselves
The open loathing between Barack Obama and Benjamin Netanyahu just got worse

The open loathing between Obama and Netanyahu just got worse

The Israeli PM's relationship with the Obama has always been chilly, but going over the President's head on Iran will do him no favours, says Rupert Cornwell
French chefs get 'le huff' as nation slips down global cuisine rankings

French chefs get 'le huff' as nation slips down global cuisine rankings

Fury at British best restaurants survey sees French magazine produce a rival list
Star choreographer Matthew Bourne gives young carers a chance to perform at Sadler's Wells

Young carers to make dance debut

What happened when superstar choreographer Matthew Bourne encouraged 27 teenage carers to think about themselves for once?
Design Council's 70th anniversary: Four of the most intriguing prototypes from Ones to Watch

Design Council's 70th anniversary

Four of the most intriguing prototypes from Ones to Watch
Dame Harriet Walter: The actress on learning what it is to age, plastic surgery, and her unease at being honoured by the establishment

Dame Harriet Walter interview

The actress on learning what it is to age, plastic surgery, and her unease at being honoured by the establishment
Art should not be a slave to the ideas driving it

Art should not be a slave to the ideas driving it

Critics of Tom Stoppard's new play seem to agree that cerebral can never trump character, says DJ Taylor
Bill Granger recipes: Our chef's winter salads will make you feel energised through February

Bill Granger's winter salads

Salads aren't just a bit on the side, says our chef - their crunch, colour and natural goodness are perfect for a midwinter pick-me-up
England vs Wales: Cool head George Ford ready to put out dragon fire

George Ford: Cool head ready to put out dragon fire

No 10’s calmness under pressure will be key for England in Cardiff
Michael Calvin: Time for Old Firm to put aside bigotry and forge new links

Michael Calvin's Last Word

Time for Old Firm to put aside bigotry and forge new links