Barclays pay rebellion gathers pace

A rebellion over pay at Barclays gathered pace yesterday after a leading investor group said the bank’s boss should not receive “any bonus at all”.

Pensions & Investment Research Consultants (Pirc) has advised its members to vote against the bank’s remuneration report, which includes plans to award chief executive Bob Diamond an overall package of pay and bonuses worth £17.7 million.

Pirc’s guidance will heap more pressure on Barclays following reports that holders of more than 10 per cent of the company’s shares are already planning to vote against the bank’s pay proposals. Barclays is set for a stormy annual meeting on 27 April, with a £5.7 million tax payment made on Mr Diamond’s behalf having sparked particular anger among investors.

Pirc also suggested the bank should be considering copying Lloyds by clawing back some of the bonuses it has paid out because of its part in the scandal surrounding the mis-selling of payment protection insurance.

Pirc’s report said: “In view of the fact that Barclays’ shares are trading far below net asset value, we cannot think of any circumstances in which a chief executive who was part of a team when the bank got into that predicament should be receiving any bonus at all.

“Although the bank has not failed in the classic sense, trading at below net asset value is an investment failure from the perspective of the shareholders.”