Rebellion over bank’s bonuses gathers pace

Pensions & Investment Research Consultants (Pirc) has advised its members to vote against the bank’s remuneration report, which includes plans to award chief executive Bob Diamond an overall package of pay and bonuses worth £17.7m.

Pirc’s guidance will heap more pressure on Barclays following reports that holders of more than 10 per cent of the company’s shares are already planning to vote against the bank’s pay proposals.

Barclays is set for a stormy annual meeting on April 27, with a £5.7m tax payment made on Mr Diamond’s behalf having sparked particular anger among investors.

Pirc also suggested the bank should be considering copying Lloyds by clawing back some of the bonuses it has paid out because of its part in the scandal surrounding the mis-selling of payment protection insurance.

Pirc’s report said: “In view of the fact that Barclays’ shares are trading far below net asset value, we cannot think of any circumstances in which a chief executive who was part of a team when the bank got into that predicament should be receiving any bonus at all.

“Indeed, the board should also be considering claw-backs itself.”

Standard Life, Fidelity, Aviva and Scottish Widows, which account for 6.45 per cent of the share register, are believed to be preparing to vote against the bank’s remuneration report.