ABI questions Barclays chief's $28m pay packet

11 April 2012

Shareholders of a major British bank are becoming increasingly unhappy with the remuneration package awarded to its chief executive last year, it has emerged.

The Association of British Insurers (ABI) has sent a note to its members raising its concerns about the £17.7 million ($28.1 million) pay award Barclays gave Bob Diamond for his work in 2011.

As such, the body has issued an "amber alert" on Mr Diamond's wages, which represents the second highest warning it can give and typically it signals to investors in a company that they should consider voting against a particular course of action.

An industry source told the Daily Telegraph: "We're not saying it's the wrong thing to do, but shareholders will have to be satisfied it was the right thing to do."

Under particular scrutiny is Barclays' decision to settle Mr Diamond's outstanding tax bill of £5.75 million he was due to pay after moving from the US to the UK last year.

By Asim Shah

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