Former Barclays chief executive Bob Diamond is to give up bonuses worth up to £20m pounds, according to Barclays chairman Marcus Agius.
Agius told the committee he will now get one year’s salary and a cash payment in lieu of pension benefits worth around £2m. Last week, Diamond was expected to take away around a total of around £25m.
Last week, Diamond resigned from the bank in the wake of the Libor rigging and interest rate swap misselling scandals. Last month, the bank was fined £290m by the FSA and US authorities for manipulating the Libor rate.
Giving evidence to the Treasury select committee this morning, Agius (pictured) said he welcomes Diamond’s decision.
He said: “Bob Diamond had voluntarily decided to forego any deferred consideration, deferred bonuses. The maximum amount would be £20m. It is a decision for him but frankly it is something the board of Barclays welcomes and I am glad he has done it.”
Last week, Agius also resigned from Barclays but returned when Diamond stepped down a day later to lead the search for a new chief executive.
A statement from Barclays says: “Mr Diamond has voluntarily offered to waive all of his unvested deferred bonus awards and long term incentive share awards. This is in addition to his previous decision to forgo any consideration for an annual bonus this year. The board has accepted this offer, and all of Mr Diamond’s outstanding unvested deferred bonus awards and long-term incentives will lapse, with no compensation made in respect of the lapsed awards.
“The board has asked Mr Diamond to support the transition to the new chief executive as necessary, and he has agreed. Consistent with his contract of employment, Mr Diamond will receive up to 12 months’ salary, pension allowance and other benefits and he has agreed to forgo his contractual entitlement to tax equalisation going forward. The board has agreed with Mr Diamond that he will not receive any future bonus or incentive awards nor will he receive any further compensation payment in connection with the termination of his employment.”