Diamond could leave with pay-off of £30m

Barclays chief executive's sudden departure sets up showdown with MPs in committee hearing today

Bob Diamond could be in line for a pay-off of between £20m and £30m after he was finally forced to quit as Barclays chief executive over the rate-fixing scandal.

He will give his side of the story today when he is cross-examined by MPs on the Treasury Select Committee over how much he knew about moves to manipulate lending rates.

Mr Diamond was followed rapidly out of the door yesterday by Jerry del Missier, who quit as the bank's chief operating officer. The growing storm has now claimed three scalps at Barclays, with Marcus Agius announcing his resignation as chairman on Monday. He will now remain with the bank to lead the search for a new chief executive before stepping down.

The prospect of Mr Diamond walking away with a massive "golden goodbye" will intensify the storm raging over Barclays. The bank refused to be drawn on its size, but Lord Myners, the former City minister, suggested it could be as much as £30m.

He said: "Defining the pay-off is complex because senior executives get paid in multiple ways. But I think the amount of money, if you include his share options, restricted share rights, matching share options, retained bonus, pension, life and medical cover, is probably in the order of £20m to £30m."

It emerged yesterday that Mr Diamond could be urged to return nearly £20m in unvested – or provisional – shares awarded to him in recent years. It is understood that Alison Carnwarth, chairman of the bank's remuneration committee, is to ask him to return the bonus.

Mr Agius said the search for a new chief executive would take "as long as it needs" and that "we will not compromise on quality".

Asked about Mr Diamond's severance package, he said Barclays' board had not yet had time to address the issue, although he denied the former chief executive could be due some £20m in long-term incentive schemes. "That figure certainly didn't come from me," he said.

But shareholders, who have seen billions of pounds wiped from the value of their investments, are sure to demand that at least part of the bonuses he is owed are clawed back from Mr Diamond. A large minority voted against Barclays' 2011 remuneration report at this year's AGM, a situation Barclays is desperate to avoid in future. The National Association of Pension Funds, which represents a number of Barclays' biggest shareholders, last night demanded any pay-offs be kept to a minimum.

Its chief executive, Joanne Segars, said: "Shareholders want any severance payments to be kept to a contractual minimum and clawback mechanisms for past pay and bonuses to be fully explored. There must be no reward for failure." She said this was because shareholders had lost significant sums of cash as a result of the scandal.

George Osborne, the Chancellor, who learnt of the planned resignation on Monday night, said Mr Diamond made the right decision for the bank and for the country.

In private, ministers expressed the hope for a wider clear-out at Barclays and that he would not be replaced by one of his allies. "The problem was not just Diamond but his cronies as well," one minister said. "They [Barclays] need to get rid of the gamblers. They need to have some stability and a safe pair of hands."

Among Mr Diamond's high-profile close associates still at the bank is Rich Ricci, chief executive of corporate and investment banking. In 2008 he led the bank's acquisition and integration of Lehman Brothers.

Mr Diamond, who received nearly £18m last year, remained defiant in his resignation statement. "The impression created by the events announced last week about what Barclays and its people stand for could not be further from the truth," he said.

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Life and Style
Child's play: letting young people roam outdoors directly contradicts the current climate
lifeHow much independence should children have?
Arts and Entertainment
Tycoons' text: Warren Buffett and Bill Gates both cite John Brookes' 'Business Adventures' as their favourite book
booksFind out why America's richest men are reading John Brookes
News
i100
Arts and Entertainment
<p><strong>2008</strong></p>
<p>Troubled actor Robert Downey Jr cements his comeback from drug problems by bagging the lead role in Iron Man. Two further films follow</p>
filmRobert Downey Jr named Hollywood's highest paid actor for second year running
Life and Style
Dale Bolinger arranged to meet the girl via a fetish website
life
Property
Sign here, please: Magna Carta Island
propertyYours for a cool £4m
Independent
Travel Shop
the manor
Up to 70% off luxury travel
on city breaks Find out more
santorini
Up to 70% off luxury travel
on chic beach resorts Find out more
sardina foodie
Up to 70% off luxury travel
on country retreats Find out more
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 General

Operations and Maintenance Engineer - Solar

£30000 - £40000 Per Annum plus benefits/bonus package: The Green Recruitment C...

Sales and Maketing Director (Designate) , Watford, Hertfordshire

£60- £70K OTE £120k Plus Car: Charter Selection: Major multi-million pound lan...

Graduate Web Developer

£18000 - £28000 Per Annum: Clearwater People Solutions Ltd: Excellent opportun...

Graduate Database Developer (SQL)

£18000 - £28000 Per Annum: Clearwater People Solutions Ltd: Excellent opportun...

Day In a Page

Some are reformed drug addicts. Some are single mums. All are on benefits. But now these so-called 'scroungers’ are fighting back

The 'scroungers’ fight back

The welfare claimants battling to alter stereotypes
Amazing video shows Nasa 'flame extinguishment experiment' in action

Fireballs in space

Amazing video shows Nasa's 'flame extinguishment experiment' in action
A Bible for billionaires

A Bible for billionaires

Find out why America's richest men are reading John Brookes
Paranoid parenting is on the rise - and our children are suffering because of it

Paranoid parenting is on the rise

And our children are suffering because of it
For sale: Island where the Magna Carta was sealed

Magna Carta Island goes on sale

Yours for a cool £4m
Phone hacking scandal special report: The slide into crime at the 'News of the World'

The hacker's tale: the slide into crime at the 'News of the World'

Glenn Mulcaire was jailed for six months for intercepting phone messages. James Hanning tells his story in a new book. This is an extract
We flinch, but there are degrees of paedophilia

We flinch, but there are degrees of paedophilia

Child abusers are not all the same, yet the idea of treating them differently in relation to the severity of their crimes has somehow become controversial
The truth about conspiracy theories is that some require considering

The truth about conspiracy theories is that some require considering

For instance, did Isis kill the Israeli teenagers to trigger a war, asks Patrick Cockburn
Alistair Carmichael: 'The UK as a whole is greater than the sum of its parts'

Alistair Carmichael: 'The UK as a whole is greater than the sum of its parts'

Meet the man who doesn't want to go down in history as the country's last Scottish Secretary
Legoland Windsor's master model-makers reveal the tricks of their trade (including how to stop the kids wrecking your Eiffel Tower)

Meet the people who play with Lego for a living

They are the master builders: Lego's crack team of model-makers, who have just glued down the last of 650,000 bricks as they recreate Paris in Windsor. Susie Mesure goes behind the scenes
The 20 best days out for the summer holidays: From Spitfires to summer ferry sailings

20 best days out for the summer holidays

From summer ferry sailings in Tyne and Wear and adventure days at Bear Grylls Survival Academy to Spitfires at the Imperial War Museum Duxford and bog-snorkelling at the World Alternative Games...
Open-air theatres: If all the world is a stage, then everyone gets in on the act

All the wood’s a stage

Open-air productions are the cue for better box-office receipts, new audiences, more interesting artistic challenges – and a picnic
Rand Paul is a Republican with an eye on the world

Rupert Cornwell: A Republican with an eye on the world

Rand Paul is laying out his presidential stall by taking on his party's disastrous record on foreign policy
Self-preservation society: Pickles are moving from the side of your plate to become the star dish

Self-preservation society

Pickles are moving from the side of your plate to become the star dish
Generation gap opens a career sinkhole

Britons live ever longer, but still society persists in glorifying youth

We are living longer but considered 'past it' younger, the reshuffle suggests. There may be trouble ahead, says DJ Taylor