Barclays “faces revolt” on boss pay

A shareholder revolt over the pay of chief executive Bob Diamond is set to hit banking giant Barclays at its annual meeting later this month.

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 27 April.

The sizeable protest vote reflects anger over a £5.7 million tax payment made on Diamond’s behalf as part of an overall package of pay and bonuses worth £17.7m, according to reports.

The award of significant bonuses that reportedly included more than £6m for the co-heads of Barclays Capital came despite 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.