Barclays bosses pledge to sacrifice bonuses
Bob Diamond, the chief executive of Barclays, and its finance director, Chris Lucas, have both volunteered to give up £2.25m of last year's annual bonus if they fail to hit highly demanding targets within three years.
The about-face is seen as a move to placate a shareholder revolt at this month's annual meeting over top bankers' pay at Barclays. But it does not address the main issue which has angered investors:Mr Diamond's £5.75m tax equalisation payout.
Barclays said that it "recognised the strength of opinion expressed by some shareholders" in meetings held over the last few weeks.
Mr Diamond and Mr Lucas will only get the other half of their annual bonus – which is paid in shares – if Barclays' return on capital, which was 6.6 per cent last year, rises above its cost of capital, which was 11.5 per cent last year.
Separately yesterday, Morgan Stanley bankers – more than 5,000 of whom work in Canary Wharf – are in line for bigger pay and bonuses this year as both it and rival Bank of America Merrill Lynch reported better-than-expected first-quarter profits.
Morgan Stanley's net profit was $8.9bn (£5.5bn), compared with $7.8bn a year before. Bank of America made $653m, down from $2bn in the first quarter of 2011. Morgan Stanley's average pay for the three months rose from $69,000 to $74,000.
In pictures: Saturn images from Cassini probe as it prepares to turn lens towards Earth
Serena Williams apologises after comment that rape victim 'shouldn't have put herself in that position'
FBI finds possible human remains at former home of late gangster James Burke - the man who inspired Goodfellas
'Theres something quite unpleasant going on': Nigel Farage confronted for second time on visit to Scotland
World news in pictures
- 1 Bankers could face jail after report urges the Government to introduce new criminal offence for reckless management
- 2 Breaking the Silence: In the reality of occupation, there are no Palestinian civilians – only potential terrorists
- 3 Richard Nieuwenhuizen death: Six teenagers and 50-year-old father convicted of manslaughter in shocking case of referee killed over a game of football
- 4 Exclusive: Newcastle's star talent-spotter on brink as Joe Kinnear sparks walkout
- 5 Vast methane 'plumes' seen in Arctic ocean as sea ice retreats
iJobs Money & Business
£500 - £600 per day: Orgtel: FX Options Front Office Java / C# Developer - Ba...
£600 - £700 per day: Orgtel: Project Manager - Front Office - Regulatory IT C...
£600 - £750 per day: Orgtel: FATCA Project Manager - Banking - London - £600-...
£550 - £600 per day: Orgtel: Fidessa Analyst / PM - Banking - London - Up to £...