Barclays sparks anger as massive bonuses revealed
Three senior executives topped bank president's €8m earnings
Published 08/03/2011 | 05:00
Barclays Bank fuelled anger over bankers' pay yesterday after it emerged that three senior staff topped the £6.75m (€7.8m) earned by its president Bob Diamond last year.
The bumper payouts were disclosed in the bank's remuneration report, which showed Mr Diamond was awarded and subsequently accepted a bonus payout of £6.5m (€7.5m) on top of his basic salary of £250,000 (€290,000) last year.
Barclays said that its top earner below board level, who was unnamed, received a total pay package of £10.9m (€12.6m) in 2010 -- overtaking Mr Diamond's pay by £4m (€4.6m).
Mr Diamond, who recently told MPs the time for "remorse and apology" from banks needed to be over, will not take any of his bonus in up-front cash, but rather in shares and "deferred incentives", which depend on how the bank performs.
The figures drew an angry response from trade union leaders, while a member of the Treasury select committee labelled Mr Diamond's bonus as "extraordinary greed".
The report contained more details than usual due to conditions drawn up in the Project Merlin deal between Britain's biggest banks and the British government. The banks agreed to rein in bonuses as well as publish details of the top five highest paid senior executive officers, excluding directors such as Mr Diamond.
The five anonymous individuals at Barclays took home pay and bonuses of £10.9m (€12.6m), £10.6m (€12.3m), £7.8m (€9m), £5.2m (€6m) and £3.7m (€4.3m).
Mr Diamond, who became chief executive in January after heading investment banking arm Barclays Capital, received £250,000 (€290,000) base salary last year.
The American's total pay package overtook his peer at HSBC, Stuart Gulliver, who received £6.2m (€7.2m), including bonus.
MP John Mann, who grilled Mr Diamond at a Treasury select committee hearing in January, said: "This is extraordinary greed. He has clearly not listened to any of the calls for restraint."
Dave Prentis, general secretary at public sector union Unison, said: "At a time when public sector workers are facing pay freezes, jobs are being lost and inflation is rising, hitting families hard, bankers are still bringing home huge bonuses.
"Bob Diamond's bonus could pay for more than 200 trained nurses for a year," he said.