Bob Diamond, the US banker who runs Barclays' investment banking arm, has cemented his position as one of the highest paid bosses in a FTSE 100 company after receiving almost £36m last year. The figure comprises £21m in cash, bonuses and shares in addition to £14.8m from a three-year performance plan. The £21m includes his £250,000 base salary, £6.5m cash bonus, a £11.3m share award held in a trust for three years and £3m of shares which will be received in three years provided performance criteria are achieved. His total is boosted by the £14.8m "retained incentive opportunity" - half in cash, half in shares - put in place three years ago when he joined the Barclays board.
Diamond achieved the bonus even though Barclays took a £1.6bn hit from the sub-prime crisis in the US and despite ongoing financial woes which have seen billions wiped off share values worldwide. The bank's profits in 2007 were £7bn, the same as 2006, and its share price has suffered.
The report published yesterday also exposed the pay to bankers working on takeovers. Barclays paid one former director £600,000 a month during the bank's ill-fated bid for Dutch rival ABN Amro. Naguib Kheraj received the sum, plus £14,178 a month in benefits, from May to December 2007 for a "corporate finance advisory role". The £4.9m he received was in addition to the £657,000 he was paid to the end of April while he helped his successor settle in.
The Glasgow & Edinburgh Branches Blog. Towards a better understanding of the world, in order to change it.
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