Backlash over Barclays chief's pay

Barclays is set to spend much of the next 10 days ahead of its annual meeting reassuring investors that its chief executive Bob Diamond's £17m pay package, including £5.75m towards his New York tax bill, will not be repeated.

The bank faces a backlash from shareholders, with Standard Life and Scottish Widows both threatening to vote against Barclays' remuneration report.

The chairman Marcus Agius has told top investors they will be consulted over any future changes to Mr Diamond's pay and bonus package. He pointed out that any "tax equalisation" payment this year will be about £600,000, while Mr Diamond's overall pay and bonus package could drop by up to 75 per cent.

The bank said that the £5.75m payment was a one-off because the State of New York charged Mr Diamond capital gains tax on three, long-term incentive plans when he returned to London as chief executive of Barclays last year.

The Association of British Insurers has issued an "amber top" warning on Barclays, one level below recommending its members vote against the board at the meeting.