Barclays chief facing huge pay cut

BARCLAYS chief executive Bob Diamond is reportedly facing a 75 per cent pay cut amid shareholder concerns over bonuses and tax deals awarded to him.

Long-term incentive plans that helped the executive to receive more than £20m in 2011 fall away this year and his total package of salary, bonuses and tax benefits is unlikely to stretch to more than £5.5m, a report claimed.

A pay reduction would follows a backlash from investors over pay, with shareholders such as Standard Life threatening to vote against the bank’s remuneration report as well as the re-election of Alison Carnwath, chairman of the remuneration committee.

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Another report claimed Barclays is planning to consult with investors in future years before approving large one-off payments to executives in a move to quell shareholder dissent.

A £5.7m tax equalisation payment to cover Mr Diamond’s tax bill as a result of his move from New York to London in January is reportedly at the centre of the concerns.

The tax payment – which is common among large international companies – was unexpected, although details of how the amount would be calculated were in Mr Diamond’s contract.

Barclays is set for a stormy annual meeting on April 27 after Pensions & Investment Research Consultants (PIRC) added to the growing number of voices speaking out against the bank’s remuneration report.

PIRC also suggested it should be considering clawing back some of the bonuses it has paid out.