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Barclays faces clash with Diamond over £25m pay-off

Bob Diamond TSC

Barclays is set for a showdown with former chief executive Bob Diamond over a potential £25m pay-off from the bank.

According to reports, the bank called a late meeting on Thursday to review the terms of his contract and seek legal advice in regard to his pay-off.

Diamond resigned from Barclays earlier this week after the bank was fined £290m by US and UK regulators in the wake of the rate-rigging scandal.

The Telegraph reports that Diamond’s pay-off includes £18m of uninvested share options, £4m of benefits and more than £2m in lieu of a year’s salary and pension after leaving the bank on the direction of the Bank of England governor.

The report says the board is under intense pressure to avoid paying any sort of exit package to Diamond following the Libor scandal, which has also seen chairman Marcus Agius and chief operating officer Jerry Del Missier leave the firm.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. No doubt he’ll get it!

  2. Alan Kendrick 6th July 2012 at 9:22 am

    Bob Diamond received bonuses in past years partly based on the profits earned by Barclays in those past years. We now know that those profits were overstated because of the fiddling of the Libor figures, because of the PPI scandal, because of the overcharging to borrowers due to SWAPS and probably a number of other matters not yet come to light. These all happened on Bob’s watch, when he was either complicit or at best failed to exercise strong controls. Either way his bonuses were based on incorrect accounts, which he as a Director, signed off as being correct. At the very least, the accounts should be restated with all charges and costs including fines and penalties being allocated to those years. The overpaid bonuses plus interest should be reclaimed against all those responsible, and at least Bob did say he was responsible. When that is all done and only then should negotiations take place over his pay off.
    This should all be in addition to any legal proceedings for criminal behaviour. As I understand it, there is a collective responsibility for all Directors to correctly monitor the company the work for. They could all be said to be culpable which is why I suspect the pay off will go ahead in order to keep the skeletons buried.
    The question also has to be raised of why someone who resigns should receive a pay off, this does not apply to the vast majority of us.

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