Barclays Reveals Executive Pay Details
Barclays has revealed that Bob Diamond, its chief executive, and two of his top lieutenants received nearly £30 million ($48.6 million) in pay and bonuses for 2010 and another £77 million for past performance.
Amid a row over bankers’ pay in the UK, Barclays released a remuneration report on Monday that provided a glimpse into the pay packets of its most senior executives.
Some 231 senior employees – known as “code staff” – took home £554 million between them, an average of about £2.4 million per executive.
UK banks have sought to cool the row over banker pay by agreeing in recent weeks to boost lending to small businesses and rein in bonuses, in a peace deal with the government known as Project Merlin.
Opposition politicians and union leaders criticised the Barclays pay-outs as evidence that the industry had yet to curb its lavish remuneration practices.
“With high bonuses still being paid out, George Osborne should heed Labour’s call to repeat last year’s £3.5 billion bank bonus tax and use the money raised to support the jobs and growth Britain badly needs this year,” said Chris Leslie, shadow treasury minister.
Two of the largest pay packages were awarded to Jerry del Missier and Rich Ricci, co-heads of Barclays’ investment bank. Their packages far eclipsed Mr Diamond’s pay deal.
Each received more than £10 million in salary and bonuses for 2010, as well as a long-term incentive award of £3.3 million that will pay out in future years if performance conditions are met.
Barclays also released to both executives £30 million of shares each under past incentive schemes. Net of shares sold to pay taxes and other costs, Mr del Missier retained shares worth £16 million, while Mr Ricci’s award is worth about a net £17 million.
Mr Diamond’s bonus of £6.5 million for 2010, bringing his total pay up to £6.75 million, was significantly less than the £9.5 million that had been mooted just weeks earlier, although he was also awarded a £2.25 million long-term incentive award as well as £6.7 million net in shares for past performance.
People familiar with the bank’s discussions said the lower pay-out was designed to reflect ongoing political and social pressures on the industry.
For 2011, Mr Diamond will be paid an annual salary of £1.35 million, up from the current salary of £250,000. His annual bonus will be 2½ times his salary – £3.37 million – and he will also receive a long-term incentive plan of five times his salary.
Some 10 percent of his long-term rewards will be based on “sustainability” of the business including factors such as the bank’s relationships with regulators.