Barclays risks bonus fury with £4m payout for boss

Bob Diamond
Bob Diamond
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Barclays will reignite anger over bankers’ bonuses this week when it reveals a total payout of up to £4m for its boss Bob Diamond.

The group chief executive, who has so far refused to comment about what he will pocket for 2011, could potentially receive more than £10m, including his £1.3m salary, bonus of up to £3.4m and long-term incentives.

Although he is not expected to receive the full amount, the group’s annual report due out on Friday will reveal total pay of at least £3m to £4m, according to a Sunday newspaper report.

The announcement is likely to anger critics after the bank was last week accused by HMRC of trying to avoid paying more than £500m in tax, in schemes described as “highly abusive” dodges.

And last month it revealed a three per cent fall in profits to £5.9bn in 2011 and was criticised for not cutting bonuses enough.

The annual report will also give details of the pay of at least five senior executives at the bank.

Rich Ricci and Jerry del Missier, who jointly run its investment banking divisions, are both expected to have earned more than Mr Diamond. It is believed they were both paid more than £10m in 2010, while Mr Diamond was paid about £6.7m.

The group’s annual results last month revealed a £1.5bn bonus pool for investment bankers, which is 32 per cent smaller than the previous year.

But major shareholder group the Association of British Insurers criticised the cut, saying it was only in line with a 32 per cent fall in profits at the investment arm.

Annual incentives for executive directors and the eight highest paid senior executive officers were down 48 per cent compared to 2010 on a like-for-like basis, though Mr Diamond would not confirm how his own pay fitted into this decline.

The anger at levels of pay-outs in the City has seen Royal Bank of Scotland chief Stephen Hester turn down his £963,000 bonus and Lloyds boss Antonio Horta-Osorio waive his payout following a leave of absence.

Barclays and other banks have maintained that they need to pay competitive salaries to attract and retain the best staff.

Barclays employs around 3,000 people in Yorkshire.