Major investors set to rebel over Diamond’s pay

STANDARD Life Investments (SLI) and Scottish Widows Investment Partnership are among institutional investors in Barclays poised to mount a shareholder rebellion at the bank’s annual meeting against chief executive Bob Diamond’s £18 million pay package.

It is thought that Aviva Investors, Fidelity and others are also prepared to oppose the deal, with up to 10 per cent of investors expected to vote against the remuneration report.

SLI, which has generally been a more publicly activist shareholder of late, and Widows declined to comment yesterday. Aviva and Fidelity were unavailable.

Sources said at least one or two of the four institutions, which account for 6.45 per cent of Barclays’ share register, may also vote against the reappointment at this month’s AGM of Alison Carnwath, chairman of the bank’s remuneration committee.

In February, Robert Talbut, chairman of the Association of British Insurers’ investment committee, said the bank’s remuneration pool was “not the signal of the change required in order to improve the investment case”.

Diamond’s jackpot came despite a 3 per cent fall in pre-tax profits at the bank in 2011, when he admitted the group’s return on equity had been unacceptable.

Diamond sparked controversy early last year when he told MPs on the Treasury select committee that it was time for the banking industry to stop saying sorry for the crisis and move on to the priority of lending to households and businesses.

MARTIN FLANAGAN