Revolt on pay of Barclays chief likely

It has been reported that investors holding more than 10 per cent of the company’s shares will vote against the bank’s remuneration report on April 27.

The sizeable protest vote reflects anger over a £5.7m tax payment made on Mr Diamond’s behalf as part of an overall package of pay and bonuses worth £17.7m, the Sunday Telegraph said.

The award of significant bonuses that reportedly included more than £6m for the co-heads of Barclays Capital came despite Mr Diamond’s admission that the bank’s return on equity – a key performance measure – was “unacceptable”.

Standard Life, Fidelity, Aviva and Scottish Widows – who account for 6.45 per cent of the share register – are believed to be preparing to vote against the bank’s remuneration report or the re-election of Alison Carnwath, the chairman of the bank’s remuneration committee.

Barclays is reported to have held a series of meetings with investors in which it has argued that the bank needs to maintain its pay levels if it is to remain in the global top-tier of investment banks.

However, much of the criticism has focused on the handling of the £5.75m payment made by Barclays to cover a tax bill triggered by Mr Diamond’s move from New York to London early last year, The Sunday Times said.