Diamond ‘reluctant’ to say pay too high

Former Barclays boss Bob Diamond was “reluctant” consider that pay at the bank was too high, and the board ignored recommendations to withhold his bonus for 2011, MPs have heard.

Alison Carnwath, previously head of remuneration at the bank, told the Parliamentary Commission on banking standards she believed that Mr Diamond should have received no bonus at all for 2011, after a year of poor performance.

“The committee was aware that pay was at the top end of the scale and asked the chief executive on his appointment to take a leadership position and clarify the pay culture to staff,” she said.

“Mr Diamond was reluctant to do this and reluctant to accept pay at Barclays was high, particularly in the investment bank.”