Small shareholders give Barclays bosses uncomfortable time

Barclays’ top bosses were given an uncomfortable ride by shareholders yesterday amid anger over “obscene” pay packages at the banking giant.

A series of private investors used the bank’s annual meeting to complain that dividend payments had fallen since the financial crisis while high-flying staff were still commanding enviable salaries and bonuses.

The heated event came hours after Barclays revealed that pre-tax profits dropped 9 per cent to £1.66bn in the first quarter of 2011 after income and profits at its investment banking arm fell sharply.

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Some 11 per cent of the votes cast at the meeting at London’s Royal Festival Hall failed to back the remuneration report, which spelled out plans to pay its new chief executive, Bob Diamond, a package of up to £28m.

Under the terms of the scheme, Mr Diamond is paid £1.35m a year, some 23 per cent more than his predecessor John Varley. He is also set to receive a bonus of £6.5m for 2010, a future conditional share award of £6.75m and £13.8m of shares he is owed as part of previous long-term performance plans.

The remuneration report also contained plans to pay some of its staff bonuses in a form of bond that will attract interest of 7 per cent a year until they mature.

One shareholder, Trevor White, told the board their bonuses were “obscene” and claimed the bank’s high earners were set to trouser nearly as much as before the financial crisis struck.

“When will shareholders get proper recognition?” he said in a tirade that drew a round of applause from the crowd.

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