Barclays boss could net £10m payout

 

 

 

 

 

 

 

 

Barclays boss Bob Diamond could receive a £10 million payout in the forthcoming bonus season, according to reports.

The Barclays chief executive - who was once dubbed the unacceptable face of banking by former business secretary Lord Mandelson - could receive a share award worth as much as seven-and-a-half times his £1.3 million salary, the Sunday Times said.

However, Mr Diamond, who last year told MPs that the time for "remorse and apology" from banks needed to be over, could see the final sum lowered due to the bank's falling profits and share price over the past 12 months.

Britain's biggest banks are expected to unveil their bonus plans next month when they publish their annual results, while the US reporting season started on Friday with JP Morgan Chase revealing a huge £18.9 billion pot for pay and bonuses in 2011.

Elsewhere, the Sunday Telegraph claimed Mr Diamond had a private meeting with business secretary Vince Cable, in which the minister urged him to show restraint in the upcoming pay round.

A large reward for Mr Diamond is likely to anger Prime Minister David Cameron, who last weekend unveiled proposals to crack down on executive pay, including the introduction of a binding vote on remuneration for shareholders.

Mr Diamond is entitled to an annual cash-and-share award of as much as 250% of his £1.3 million salary. In addition, he could received a long-term share-based payout equivalent to five times his base pay, though it would be years before he could cash out the stock.

The report comes after Lloyds Banking Group chief executive Antonio Horta-Osorio announced he would forgo his annual bonus of up to £2.4 million following his two-month leave of absence and a rocky period for the banking giant.

Taxpayer-backed Royal Bank of Scotland is expected to hand out £500 million to staff, with its chief executive Stephen Hester in line for as much as £1.2 million.

The 80% state-owned bank is likely to be the focus of any anger over bonuses after it recently announced another round of job cuts - some 3,500 - at its investment banking arm Global Banking and Markets (GBM).

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