In what will amount to a substantial protest vote, four leading investors — Standard Life, Fidelity, Aviva and Scottish Widows — are believed to be preparing to protest against the pay of the chief executive and other senior executives. Between them the four account for 6.45pc of Barclays’ share register.
A number of other leading investors are understood to be ready to support them at the April 27 meeting. The four are believed to be poised to vote against either the remuneration report or the re-election of Alison Carnwath, chairman of the bank’s remuneration committee. They may even vote against both.
Barclays has made considerable efforts to allay the concerns of investors. Mr Diamond, Ms Carnwath and Marcus Agius, the bank’s chair chairman, have held a series of meetings in which the chief executive is believed to have argued that the bank needs to maintain its pay levels if it is to remain in the global top-tier of investment banks
The move by investors could force Barclays to review the way it compensates senior executives. Investors are said to be worried by three separate issues. The £5.75m cost of covering a “tax equalisation” charge for Mr Diamond as part of his £17.7m package is said to have left a number “pretty aghast”. Secondly, the fact that Barclays continues to pay significant bonuses despite Mr Diamond’s comments that last year’s 6.6pc return on equity was “unacceptable” has left investors questioning the compensation rationale.
In addition to Mr Diamond’s package, which included £2.7m of performance-related pay, two other executives were paid £6.7m and £6.5m. They were not named but are understood to have been Jerry del Missier and Rich Ricci, co-heads of Barclay’s investment bank.
Source: Barclays faces backlash over Bob Diamond's pay package - Telegraph
You can't make it up - owners of the bank should fire him as example and hire somebody who can control costs not just at call center outsource level but right to the top.
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