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


Breaking News

Expert claims the shark that mauled a 62-year-old man on NSW coast was a massive 2.5METRE long Great White

David Quinlivan attacked by shark at Black Head Beach on the NSW coastHe suffered lacerations to his leg and a bite to the bone during ...

Former Queen's Guard groped and leered at two young girl band members who had hired him as personal trainer to get them in shape 

Shane Lawton told two victims to 'strip' so he could take measurements 37-year-old also inappropriately touched a victim during a massage Branded women 'sex objects' and said ...

2,000 migrants arrive in Austria: Hungarian government lays on buses to take refugees from Budapest just hours after thousands started to walk the 100 miles to the border 

The buses will take them to Austria's capital Vienna and to Germany, which expects to take in over 800,000 this yearThey began the 100-mile march ...

Legless Aussie surfer set to compete in an internationl surfing competition

Jade 'Red' Wheatley, 34, lost his legs in a horrific accident at just 19The tragic incident occurred road roller cab fell on him - crushing his legsThe ...

Parents are being made to feel guilty for sending their children to private schools because of 'lazy stereotypes', warns expert 

'Parents being made to feel guilty for sending children to private schools'Warning came from the chief executive of the Sutton Trust, Lee Elliot MajorHe said ...

Cruise passengers expecting a week in a tropical paradise are furious when their ship is unexpectedly diverted to chilly Melbourne and Hobart - where a lot of the them lived

Carnival Spirit left on March 10 for an eight-day cruise to New CaledoniaJust three-hours in it diverted to Melbourne and later to HobartWith 2,000 passengers, ...

Grandparents support group is questioned by police over missing toddler William Tyrrell

William disappeared from his grandmother's home on September 12, 2014New reports claim a grandparents group is being interviewed by policeThe group denied any involvement with ...

Refugee crisis: Author Patrick Ness' appeal raises £400,000 with support of famous writers

A fundraising appeal for child refugees by author Patrick Ness has raised more than £400,000 in just 36 hours thanks to contributions from fellow writers ...

'They are holding my father to ransom': Turkish hospital refuses to release body of British tourist until his family settle £25,000 bill for three days of intensive care treatment

Ray Kippin suffered a heart attack while on holiday with his wife in Turkey53-year-old spent three days in intensive care before he passed awayFamily left ...

'He's been here since he was four': Former Sydney bikie boss Sam Ibrahim will fight the decision to deport him back to his place of birth Lebanon

Sam Ibrahim will fight an order to deport him to his birth country, Lebanon Ibrahim failed a character test set out under new strict citizenship lawsThe ...