PreviousNext

James Moore: Barclays bosses' offer to give up half their bonuses doesn't amount to much

By // News | Breaking News | James Moore: Barclays bosses' offer to give up half their bonuses doesn't amount to much
Email to a friend Plain text Print version // Font size: Decrease font Enlarge font

Outlook Oh dear. Barclays' PR offensive with its fractious corps of investors appears not to have been going too well. How else to explain yesterday's unscheduled announcement of changes to the remuneration arrangements of chief executive Bob Diamond and his finance director Chris Lucas.

It's all rather complicated – as ever – but the upshot is they could lose up to half of their 2011 bonuses if the bank's profitability doesn't improve quickly enough.

That amounts to £1.35m in the case of Mr Diamond and £900,000 for Mr Lucas. However, their total packages were worth £6.3m and £3.9m respectively. So it doesn't amount to all that much. And that's if you accept the £6.3m as the correct figure for Mr Diamond's pay. Some critics will tell you the true number should be £17m. Some claim £13m. They'll probably all look at this and say "so what".

Concession it is, but a rather minor one, not least because the part of Mr Diamond's various bonuses he stands to lose were 80 per cent of the maximum the bank could have paid him in a year when Barclays return on equity (the figure Messrs Diamond and Lucas have to improve to keep the money) came in at a woeful 6.6 per cent. Mr Diamond set a target of 13 per cent by next year and unless he has been studying at Hogwarts School of Witchcraft and Wizardry he won't meet that.

Will the move be enough to placate the investors who have been bending the ears of his chairman, Marcus Agius, over the past few days? That's open to question.

Those investors, like Barclays, will have noted this week's vote against the pay awards made to Vikram Pandit and his executive pals at Citigroup in the US. Now it isn't entirely fair to compare the two. Citi received a bailout. Barclays did not. And Citi makes Barclays look like a model of restraint when it comes to how its executive plans are structured.

All the same, Citi's vote was evidence that the world has changed. Perhaps Alison Carnwath, who chairs Barclays' remuneration committee, will see that now.

There still remains the issue of how Barclays adds up the numbers so Messrs Diamond and Lucas get their money.

If this involves cutting the jobs of lots of little people rather than the pay of Barclays' high-rolling investment bankers then it could be in for a long hot summer of discontent.

Tagged : No tags for this article

Headlines Newsview all

Amanda Holden at the centre of Twitter backlash as she sends daughter to school dressed as Pretty Woman prostitute for fancy dress day

A parenting group has slammed TV star Amanda Holden for posting a picture of her nine-year-old daughter 'dressed as a prostitute' online.The Britain's Got Talent ... Full story

Grandmother filmed confronting militants and branding them 'devils' before quoting verses in the Koran that forbid slaughter

An incredible video has emerged showing the moment an elderly woman bravely confronted two Islamic State militants, telling them their terror group is cursed and ... Full story

Jobseeker shocked to be sent rudest rejection email ever calling him an 'old, aesthetically challenged professional pr*** with no teeth'

A jobseeker was shocked after he was branded as 'irritating', 'rude' and 'obnoxious' in a cutting email accidentally sent to him by a prospective employer.James ... Full story

Youngsters turning their backs on binge drinking with 40% surge in teetotal teens and students

Teenagers and young adults are turning their backs on binge drinking, dramatic new figures have revealed.The proportion of teetotal 16-to-24 year olds has rocketed by ... Full story

Talented 18-year-old pianist who had won a place at Cambridge University was killed by a train after suffering a lapse into deep depression

A gifted 18-year-old pupil who had won a place at Cambridge University was killed by a train after suffering a lapse into 'deep depression', his ... Full story

Former PE teacher, 91, becomes oldest person ever sent to prison for the first time after being found guilty of string of sex attacks on boys

A 91-year-old former teacher has become the oldest person to be sent to prison for the first time after he was jailed for carrying out ... Full story

Beauty therapist who posted dozens of weight loss selfies showing off her new slim figure on Facebook is reported for encouraging nudity

A beauty therapist who posted dozens of 'selfie' pictures of her new slimline figure on Facebook said she was shocked and upset after being reported ... Full story

Parents slam former Ofsted boss Zenna Atkins who is now chair of school governors over x-rated messages she posted on public Facebook page

Parents have slammed a former Ofsted chief who is now chairman of a school's governing board over x-rated messages she posted on Facebook.Zenna Atkins, who ... Full story

Taxpayers forked out £2,300 a month for council boss on £195,000 a year salary to drive luxury Porsche

Taxpayers paid out more than £2,300 a month for a council chief executive on a £195,000 a year salary to drive around in a luxury ... Full story

30 signs YOUR relationship has hit the comfort zone (and will go the distance)

Do you go au natural around your partner, chat to them while naked and do their laundry? You've officially hit the comfort zone.New research reveals ... Full story

Number of Muslim children in England and Wales doubles in a decade with one in 12 school pupils now brought up in Islamic home

The number of Muslim children in England and Wales has doubled in a decade, according to the most detailed study of its kind.An analysis of ... Full story

Comment on: James Moore: Barclays bosses' offer to give up half their bonuses doesn't amount to much

Rate this article

0

Breaking News

Mohammed Emwazi: 'Jihadi John was my best worker', IT boss of Isis militant says

The British graduate unmasked in reports as the Isis executioner known as Jihadi John was a model employee, "calm and decent" and "very good with ...

Rebekah Brooks: Former Sun and News of the World editor reportedly poised for News Corp return as Storyful boss

Rebekah Brooks, the former editor of the now-defunct tabloid News of the World and the Sun and a much trusted lieutenant of Rupert Murdoch, may ...

Warren Buffett: I know who's taking over as Berkshire Hathaway CEO - but I'm not telling

Warren Buffett, the 84-year-old Sage of Omaha, has identified his successor, but is not telling anyone who it is yet. In his 50th annual letter to ...

Business Secretary Vince Cable warns interest rate rises could hit Londoners

Homeowners in London could be “very badly exposed” if the Bank of England raises interest rates in the coming years, the Business Secretary, Vince Cable, ...

Civil Aviation Authority rejects advice to reform board

Britain’s aviation regulator has rejected a proposal to overhaul its board structure in order to improve corporate governance, as recommended by the Big Four accountancy ...

Week Ahead: After the bloodbath at Standard Chartered investors are prepared to be disappointed

Just how bad will the damage be for Standard Chartered? After the boardroom bloodbath this week, investors are prepared for disappointment when the emerging markets ...

Sports attractions fuel capital's hotel boom

London is in the midst of a hotel boom as a growing economy and events such as this year’s rugby World Cup push occupancy rates ...

David Prosser: Small businesses hold the key to raising Britain's productivity

Improving productivity is the next big challenge for the UK’s economic policymakers. It represents an opportunity to confront one of the most awkward questions facing ...

End of the licence fee: BBC to back radical overhaul of how Corporation is funded

The BBC will back a radical overhaul of the licence fee, paving the way for the end of the current system of funding the state ...

End of the licence fee: BBC to back radical overhaul of how it is funded

The BBC will back a radical overhaul of the licence fee, paving the way for the end of the current system of funding the state ...