Barclays boss Bob Diamond refuses to disclose bonus
Bob Diamond is accused of delaying the announcement of his bonus award. Picture: PA
LABOUR has warned Barclays boss Bob Diamond against delaying the announcement of his bonus, in what they said was an attempt by the bank to avoid the furore over executive pay.
Barclays, the UK’s biggest bank, yesterday announced that its profits fell by almost a third to £5.9 billion last year, but failed to disclose what its senior executives will receive as a bonus.
There has been widespread speculation that Mr Diamond, who yesterday avoided questions on his bonus, will receive up to £10 million for 2011 as analysts claimed that Barclays were continuing “business as usual” despite political and public anger over bonuses.
However, the bank said that cash bonuses would be limited to £65,000 and senior executives would receive a total of 48 per cent less than last year.
Barclays and Lloyds both said that they had beat the Project Merlin targets of lending to businesses, referring to the deal struck with the government to justify bonuses. But after the recent anger which forced Royal Bank of Scotland chief executive Stephen Hester to drop his £930,000 bonus, along with pressure from Labour on the government to introduce a bonus tax, Barclays said it would not be publishing details until March.
However, Mr Diamond refused to be drawn on whether he would accept his bonus. “We are here today to discuss the results,” he said.
He said Barclays would not comment on discussions the bank had held with its institutional investors on remuneration policy, but that relations with them were “close and constructive”.
Mr Diamond added that some shareholders had urged him to do what was necessary to attract and retain top investment banking talent, adding that some had warned him: “Bob, don’t become uncompetitive [on pay].”
However, the Barclays chief did admit that “we need to balance remaining competitive with being responsive to the public mood”.
Unlike RBS, which is 83 per cent owned by the taxpayer following its £45bn bailout by the government, Barclays is not part-owned by the state as it did not need a bailout during the banking crisis.
However, last night Labour shadow business minister Ian Murray, the MP for Edinburgh South, called on Barclays to bring forward its remuneration report, which is not expected to be published until late March, and suggested that the delay was an attempt to avoid some of the anger directed at RBS and Mr Hester.
He said: “Chief executives like Bob Diamond should take note of public anger and should be open about the bonuses they are receiving.
“It seems clear that Barclays and Mr Diamond are delaying publishing his bonus until the furore over RBS and Lloyds has calmed down. However, this issue is not going to go away.”
Analysts claimed that the effect of the announcement was “business as usual” for Barclays and that the reductions announced did not reflect the public mood.
Robert Talbut, chairman of the Association of British Insurer’s investment committee, said: “Whilst overall bonus levels at Barclays have been reduced, for Barclays Capital this reduction is only in line with the fall in profit before tax at BarCap. This appears to be very close to business as usual. It is not the signal of the change required in order to improve the investment case.”
Barclays is not the only bank in the spotlight on bonuses for chief executives. It is expected that HSBC boss Stuart Gulliver could also receive a huge bonus of more than £10m in the next few weeks.
The Lloyds Group, which includes the former Halifax Bank of Scotland and is 40 per cent owned by the taxpayer, is also expected to give its chief executive Antonio Horta-Osorio a bonus of at least £2m.
Profile: Bob Diamond
BOB Diamond’s rise to the position of chief executive of Barclays has capped a glittering career that has made him one of the world’s richest bankers, with an estimated fortune of £95 million.
Brought up as one of nine children by second-generation Scottish and Irish immigrants in Massachusetts, the 59-year-old father of three studied at the University of Connecticut, and was awarded the top MBA from its business school. He became a lecturer there, but moved to Morgan Stanley in 1979 to take up a job as a bond trader.
He then moved to Credit Suisse, and became head of its Asian operations in 1992.
Mr Diamond joined Barclays in 1996, after being offered a job in its BZW stockbroking division.
Following two mergers, he found himself working for Barclays Capital, which gave Diamond the resources to create an investment banking powerhouse.
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Comments
There are 23 comments to this article
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Hector the Lessor
Monday, February 13, 2012 at 08:37 AMCheez, the guy has a contract, it refers to him alone and no one else. Or do you want to change how the world goes round. If he has been excessively remunerated then the problem lies with his employers who should be sued until the pips drop out of their underwear, if not, well just class him as yet another lucky b#st#rd who has been in the right place at the right time. Do you not wish you could be so lucky.
Aussie Aussie Aussie
Saturday, February 11, 2012 at 11:13 PMAustralia is introducing a 'super profits' tax on mining companies. Perhaps the UK could do likewise with the banks. The money is going to a fund to assist the country after mining is finished in the country. Banking will not always be as it is now. Tax the fat cat banks.
New Unionism
Saturday, February 11, 2012 at 10:22 PMTax the scum out of the country. UK is Greece, an independent Scotland like Norway.
New Unionism
Saturday, February 11, 2012 at 09:29 PMIts the investment arms which are out of control and guess what, they are all based in the City. makes no odds to see us, we would be better off with a more balanced economy as would Liverpool, Birmingham, Newcastle etc
New Unionism
Saturday, February 11, 2012 at 09:28 PM16 Not the point though - the shareholders of these companies are wondering why every pound in two is given back to the traders in the investment banks. Why is this not done to the staff in the retail arms and other arms of the group. Its only the investment workers getting this! Its a CON
FTH22inarow
Saturday, February 11, 2012 at 08:01 PMGet these greedy parasites tae f'k!
gratislobotommy
Saturday, February 11, 2012 at 07:58 PMABDUCTIONS FORCED BRAIN ELECTRODE-CHIP IMPLANTS BLACKLISTING FORCEFUL UNEMPLOYMENT HUMAN EXPERIMENTATION MK-ULTRA BRAINWASHING AND ASSASSINATIONS AGAINST WHITE(under "NAZI" lie) CIVILIAN POPULATION TODAY IN 20112012 ACROSS THE EUROPE AND NORTHERN AMERICA! VISIT ALL NEW http:notethicsbutbutchery.blogspot.com OR WHOLE STORY http:myshortbiography.blogspot.com ARIZONA = UTOYA = THERE WAS NO SHOOTING EITHER IN NORWAY OR ARIZONA, BUT INSTEAD “AFTERLIFE” CASH$$ & FLASH MOB WITH TEAR GASS AND THEATER WHILE CALLING YOU TERRORISTS !!!! Guilt or blame and shame weapon against us and our families in our own countries during bogus “economic crises” while importing here non white third world foreigners! 911(TWIN TOWERS) = NORWAY BOMBING OR STATE SPONSORED TERRORISM, HOWEVER, WAS REAL !!! http:stateofterror.blogspot.com OR http:avsecbostjan.blogspot.com
duelaynomore
Saturday, February 11, 2012 at 03:05 PMIf Barclays or HSBC decide to domicile outside the UK, it'll only be because pressure from taxation and regulations has driven them to leave. If that is what those on the left of politics want..then be it on their own heads..as per the Greek public. You can't tax and annoy the golden goose and then expect it still to lay nice fat eggs for you. If you want investment and an improved economy..stop trying to kill the animal at birth.
trenchchat
Saturday, February 11, 2012 at 10:34 AMNationalise the banks under workers control with no compensation for the 1%. - that is the only viable answer as the banks will NEVER change . More and more people are turning to mutuals and credit unions as a a more ethical alternative to these leeches.
B K
Saturday, February 11, 2012 at 10:32 AMThe problem with targets is that they set them themselves, so they are automatically met. If increasing the bank's profits had been one of these targets they would have failed miserably, as the profits fell drastically, so as usual with these greedy parasites, they are being rewarded for failure.
Willie Boy
Saturday, February 11, 2012 at 10:08 AMAyrshire bard. sorry that your shares are not performing but neither are they for millions of others as their saving and pensions collapse. In relation to your comment about Barclays not recieving help from the British taxpayer, can I just say that Barclays have avoided billions in tax by delaring profits outwith Britain in very complicated and secret offshore transfer arrangement. Indeed, Bob diamond had to try and kid on that workers national insurance contributions were actaully part of the corporation tax - so low was their CT bill.
The Ayrshire Bard
Saturday, February 11, 2012 at 09:48 AMAs a Barclays share holder I am amazed at the ignorance of those who seem to think they have the right to know the personal finances of Bob Diamond. Barclays was not helped out of trouble by the British taxpayer and therefore has no obligation to them. Of course I'm disappointed with the current share level but Barclays is no different to the thousands of companies across the globe who are going through a tough time at the moment.
Finnzz
Saturday, February 11, 2012 at 09:18 AMAs Barclays did not receive any government money for any bale-out, any business decisions regarding the bank and its renumeration policy is entirely the purleau of barclays. And not the business of some jumped-up Labour non-entity whose party were responsible for the legislation that allows this bonus culture to exist.
Ancient Wisdom
Saturday, February 11, 2012 at 09:16 AMHe has every right to keep such matters private. Few of us tell the world the size of our pay packets (unless we are crawling for sympathy).
Kinghob
Saturday, February 11, 2012 at 06:09 AM"This is the man who tried to hold the UK govt to ransom by threatening to remove Barclays from the UK if the 'new' financial regulation did not suit him............" A bit like the hobby threats of arch unionist michelle mone then?
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