Barclays chief could receive £9m bonus

The row over banker’s pay in Britain has been reignited after reports Barclays boss Bob Diamond could be in line to receive a bonus package of more than £9m (€10.7m).

Members of Barclays’ remuneration committee have discussed giving the package to the new chief executive although a decision will not be made until next Thursday when the full board meets and the final figure could be amended.

Although Barclays received no direct bail-out from the Government, such a large rewards package would be likely to fan flames of public anger about the bonus culture in the banking sector.

Mr Diamond, who is estimated to be worth £95m (€112.6m), was once described as the unacceptable face of banking by Lord Mandelson because of his legendary riches.

Richard Broadbent, the senior independent director and chairman of the bank’s remuneration committee, has disclosed the plans to some of Barclays’ largest investors, Sky News said.

A spokeswoman for Barclays stressed no decision has yet been taken.

Barclays is also likely to say the proportion of its revenues it pays out to staff has risen from 38% to “a figure between 40% and 45%”, when it reports full-year results on Tuesday February 15, Sky News said.

Len McCluskey, general secretary of Unite, said: “If this bonus story is accurate Bob Diamond and his chums in the City again make blatantly clear their arrogance in awarding themselves bumper bonuses. They continue to ignore the devastation their banks have brought to this country and the Government continues to allow them to laugh all the way to the bank.

“Nobody is fooled by Cameron and Clegg’s empty promises of reining in these greedy bankers. They are busy slashing essential public services, while these bosses continue to enjoy their lavish lifestyles.”

Labour MP Chuka Umunna told FT Weekend: “At a time when many public sector workers are receiving their redundancy notices because of austerity measures taken as a result of the debts caused by the financial crisis, any award of this size will arouse anger among those now paying the price.”

Mr Diamond recently told a Treasury Select Committee of MPs: “There was a period of remorse and apology for banks and I think that period needs to be over.”

He said he had waived his bonus for the past two years but told the committee he would need to discuss with his family whether to do so again.

Mr Diamond was previously chief executive of Barclays Capital, the bank’s investment banking arm, before taking over from John Varley at the start of 2011.

In his new job Mr Diamond receives an annual salary of £1.35m (€1.6m), up from the £250,000 (€296,000) he was paid every year since 1999, with a potential annual bonus of up to £3.375m (€4m).

He is also entitled to long-term performance-based incentive shares worth £6.75m (€8m) next year.

The bonus package he is due to receive is from his work at Bar Cap in 2010, which is believed to have put in a strong performance last year, said Sky.

Under new rules imposed by the Financial Services Authority clamp down on the bonus culture, Mr Diamond will only be able to receive 20% of his bonus upfront in cash. The rest will be paid in shares or bonds.

Married with three children, the businessman is a keen sports fan, with Chelsea sharing his affection alongside native Boston baseball and basketball teams, the Red Sox and Celtics.