Barclays boss faces 75% pay cut
Barclays boss Bob Diamond is reportedly facing a 75% pay cut amid shareholder concerns over bonuses and tax deals awarded to the chief executive.
Long-term incentive plans that helped the executive receive more than £20 million in 2011 fall away this year and his total package of salary, bonuses and tax benefits is unlikely to stretch to more than £5.5 million, the Sunday Times said.
A pay reduction would follows a backlash from investors over pay, with shareholders such as Standard life threatening to vote against the bank's remuneration report as well as the re-election of Alison Carnwath, chairman of the remuneration committee.
Elsewhere, the Sunday Telegraph claimed Barclays is planning to consult with investors in future years before approving large one-off payments to executives in a bid to quell shareholder dissent.
A £5.7 million tax equalisation payment to cover Mr Diamond's tax bill as a result of his move from New York to London in January is reportedly at the centre of the concerns.
The tax payment - which is common among large international companies - was unexpected, although details of how the amount would be calculated were in Mr Diamond's contract.
Barclays is set for a stormy annual meeting on April 27 after Pensions & Investment Research Consultants (Pirc) added to the growing number of voices speaking out against the bank's remuneration report.
Pirc also suggested the bank should be considering copying Lloyds by clawing back some of the bonuses it has paid out because of its part in the scandal surrounding the mis-selling of payment protection insurance.
However it is not expected that any concessions will be made to the awards already granted to Mr Diamond.
Barclays is reported to have held a series of meetings with investors in which it has argued that the bank needs to maintain its pay levels if it is to remain in the global top tier of investment banks.