Barclays chief executive Bob Diamond has agreed to a change in the terms of his £2.7m deferred bonus for 2011 following pressure from shareholders.
This month, the Association of British Insurers issued an “amber top” alert to its members over Diamond’s £17.7m pay packet.
Investor group Pensions & Investment Research Group advised its members to vote against the bank’s remuneration report.
Barclays says both Diamond and the firm’s group finance director Chris Lucas have agreed to subject their bonuses, which are awarded in shares and deferred for three years, to a further condition which means 50 per cent will not be paid out in full until Barclays’ return on equity exceeds its cost of equity.
In a statement, Barclays says: “Bob Diamond, chief executive, and Chris Lucas, group finance director, have volunteered to subject their 2011 bonus awards, which were awarded all in shares and fully deferred over three years, to a further condition.
“That condition is as follows: that one-half of their deferred bonus award that may vest in each year will not pay out until Barclays’ return on equity exceeds its cost of equity and if that condition is not met, the potential payout caught by it will be subject to lapse if it is not met within three years from the date of the award.”
PageRussell chartered financial planner Tim Page says: “This is a tactical move to improve the public’s perception. The bottom line is investment bankers get the rewards and the taxpayers insure all the losses.”