Shareholders revolt over Diamond pay

The Local Authority Pension Fund Forum has urged its members, who are responsible for assets worth over £100bn, to oppose the Barclays remuneration report at the bank’s annual meeting in London on Friday.

According to reports, as many as 15 per cent of shareholder votes will be against the report and re-election of Alison Carnwath as chairman of its pay committee.

Investors remain unhappy despite the introduction of new performance hurdles on Mr Diamond’s 2011 bonus and forecasts that the bank will report £2bn of profits for the first three months of 2012, up from £1.66bn last time.

Shareholders are particularly angry over a £5.7m payment to cover a tax bill, as well as a bonus that was originally twice his annual salary despite what Mr Diamond has admitted was a disappointing year in 2011.

The Association of British Insurers has issued its members with an amber top warning over the pay scheme, while a Sunday newspaper said Threadneedle Investments, which holds a 0.4 per cent stake, has indicated its opposition.

Ian Greenwood, the chairman of the Local Authority Pension Fund Forum, said there had been an “unprecedented level of interest” from members in the remuneration policy at Barclays.

He added: “We support the position of other investors and investor groups proposing to vote against the remuneration report, in particular due to issues relating to the pay of the chief executive.

“We believe the company needs a clear signal from shareholders that a different approach is required in future.”