Barclays alters remuneration deals

20 April 2012

Barclays has announced it is to tone down the remuneration packages offered to its senior officials amid pressure from investors to do so.

The major British bank faced widespread criticism earlier this month when it revealed it would be awarding chief executive Bob Diamond a total pay packet of £17.7 million ($28.1 million) for his work in 2011.

For instance, the Association of British Insurers sent a note to its members informing them it had issued an "amber alert" on this decision, meaning shareholders were advised to vote against this pay.

And Barclays yesterday (19 April) informed its shareholders that both Mr Diamond and finance director Chris Lucas will now only receive their complete bonuses should the bank meet certain targets over the next three years.

Therefore, Mt Diamond's £2.7 million bonus will no longer be paid at a rate of £900,000 in shares annually unless the financier's return on equity exceeds its cost of equity.

By Asim Shah