• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Bob Diamond's £17.7m package at Barclays is 'out of order', says IoD chief Simon Walk

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Bob Diamond's £17.7m package at Barclays is 'out of order', says IoD chief Simon Walk



    The criticism from the Institute of Directors (IoD) will bring added pressure on the bank ahead of quarterly financial results on Thursday, which are expected to show profits of £2bn, and a fiery shareholder meeting on Friday.

    Simon Walker, director general of the IoD, said bonuses at Barclays were too high and that the bank should not be run "for the benefit of its top executives".

    "I think Barclays, overall, is out of order and that includes Bob Diamond. Barclays pays three times more in bonuses to top executives than it does in total dividends to all its shareholders," he said.

    Mr Walker added that banking industry pay levels raised "questions" for investors, as he welcomed moves by shareholders to put a brake on the bonuses handed to the chief executives of banks, including Barclays and Citigroup.

    "There are encouraging signs that shareholders are taking an activist approach to their ownership responsibilities. Citigroup's rejection of its chief executive's pay award and Barclays' remuneration concessions are two examples."

    Barclays will report its financial results for the first three months of the year, which are expected to show the bank made a profit of about £2bn for the period, compared with £1.66bn in 2011. The bank is also expected to say it has set aside hundreds of millions of pounds for new payment protection insurance claims.

    The bank will be hoping the improved profits help calm investor anger over the £17.7m package awarded to Mr Diamond.

    The Barclays board is facing the prospect of a shareholder revolt over the award. In particular, shareholders have been angered by a controversial £5.75m "tax equalisation" payment made by the bank to cover the cost of a tax bill incurred by Mr Diamond when he relocated from New York to London to take charge of the bank at the start of last year.

    Barclays last week offered a concession to investors, saying it would subject half of Mr Diamond's bonus from 2011 to an additional hurdle that will mean he will not get that portion of the award if the bank's return on equity does not exceed its cost of equity.

    Despite this, some investors are still planning to vote against the bank's remuneration report at its annual general meeting on Friday. About 15pc of shareholders are expected to vote against the report and the re-election of Alison Carnwath as chairman of its remuneration committee.

    Threadneedle Investments, which holds a 0.4pc stake in Barclays, said at the weekend it would vote against the pay report, adding its name to a list that includes Fidelity and Scottish Widows

    Source: Bob Diamond's £17.7m package at Barclays is 'out of order', says IoD chief Simon Walker - Telegraph

    I've been posting about this for years and was called commie!

    Now IoD chief says the same thing - guess he must a commie also!

    #2
    Originally posted by AtW View Post


    The criticism from the Institute of Directors (IoD) will bring added pressure on the bank ahead of quarterly financial results on Thursday, which are expected to show profits of £2bn, and a fiery shareholder meeting on Friday.

    Simon Walker, director general of the IoD, said bonuses at Barclays were too high and that the bank should not be run "for the benefit of its top executives".

    "I think Barclays, overall, is out of order and that includes Bob Diamond. Barclays pays three times more in bonuses to top executives than it does in total dividends to all its shareholders," he said.

    Mr Walker added that banking industry pay levels raised "questions" for investors, as he welcomed moves by shareholders to put a brake on the bonuses handed to the chief executives of banks, including Barclays and Citigroup.

    "There are encouraging signs that shareholders are taking an activist approach to their ownership responsibilities. Citigroup's rejection of its chief executive's pay award and Barclays' remuneration concessions are two examples."

    Barclays will report its financial results for the first three months of the year, which are expected to show the bank made a profit of about £2bn for the period, compared with £1.66bn in 2011. The bank is also expected to say it has set aside hundreds of millions of pounds for new payment protection insurance claims.

    The bank will be hoping the improved profits help calm investor anger over the £17.7m package awarded to Mr Diamond.

    The Barclays board is facing the prospect of a shareholder revolt over the award. In particular, shareholders have been angered by a controversial £5.75m "tax equalisation" payment made by the bank to cover the cost of a tax bill incurred by Mr Diamond when he relocated from New York to London to take charge of the bank at the start of last year.

    Barclays last week offered a concession to investors, saying it would subject half of Mr Diamond's bonus from 2011 to an additional hurdle that will mean he will not get that portion of the award if the bank's return on equity does not exceed its cost of equity.

    Despite this, some investors are still planning to vote against the bank's remuneration report at its annual general meeting on Friday. About 15pc of shareholders are expected to vote against the report and the re-election of Alison Carnwath as chairman of its remuneration committee.

    Threadneedle Investments, which holds a 0.4pc stake in Barclays, said at the weekend it would vote against the pay report, adding its name to a list that includes Fidelity and Scottish Widows

    Source: Bob Diamond's £17.7m package at Barclays is 'out of order', says IoD chief Simon Walker - Telegraph

    I've been posting about this for years and was called commie!

    Now IoD chief says the same thing - guess he must a commie also!
    So when one day you sell your wine business for squillions no doubt you will accept that it is thoroughly disproportionate and undeserved (considering you spent most of your time on CUK) and you will voluntarily redistribute it amongst others.
    Let us not forget EU open doors immigration benefits IT contractors more than anyone

    Comment


      #3
      Originally posted by DodgyAgent View Post
      So when one day you sell your wine business for squillions no doubt you will accept that it is thoroughly disproportionate and undeserved (considering you spent most of your time on CUK) and you will voluntarily redistribute it amongst others.
      I appreciate that your line of duty does not require massive analytical skills, however specifically for people like yourself I've highlighted key things in the article:

      "Barclays pays three times more in bonuses to top executives than it does in total dividends to all its shareholders"

      My objection therefore is to the managerment that awards itself MASSIVE bonuses whilst shafting shareholders who OWN the the firm: doing all this despite bank not doing particularly well.

      If Bob Diamond was the sole owner of the company then I'd have no problems himself getting whatever bonus he awards, though I bet you 2 bad references that he'd prefer it to be paid as dividends.

      Should I happen to sell the company I run at a profit I promise to give you some money to attend some evening GCSE level economics courses to get you up to speed, or maybe even better some church run classes: "thou shalt not steal" applies to this case in my opinion.
      Last edited by AtW; 25 April 2012, 21:50.

      Comment


        #4
        Originally posted by AtW View Post
        I appreciate that your line of duty does not require massive analytical skills, however specifically for people like yourself I've highlighted key things in the article:

        "Barclays pays three times more in bonuses to top executives than it does in total dividends to all its shareholders"

        My objection therefore is to the managerment that awards itself MASSIVE bonuses whilst shafting shareholders who OWN the the firm: doing all this despite bank not doing particularly well.

        If Bob Diamond was the sole owner of the company then I'd have no problems himself getting whatever bonus he awards, though I bet you 2 bad references that he'd prefer it to be paid as dividends.

        Should I happen to sell the company I run at a profit I promise to give you some money to attend some evening GCSE level economics courses to get you up to speed, or maybe even better some church run classes: "thou shalt not steal" applies to this case in my opinion.

        His pay is a matter between him and barclays shareholders. If they are not happy then they should do something about it it. If they dont like his pay then sell the shares and buy shares in something else. The quid pro quo of this witch hunt against the highly paid is that if ever you are fortunate enough to make vast sums of money you in turn will attract similar attention and criticism.
        Let us not forget EU open doors immigration benefits IT contractors more than anyone

        Comment


          #5
          Originally posted by DodgyAgent View Post
          His pay is a matter between him and barclays shareholders. If they are not happy then they should do something about it it. If they dont like his pay then sell the shares and buy shares in something else. The quid pro quo of this witch hunt against the highly paid is that if ever you are fortunate enough to make vast sums of money you in turn will attract similar attention and criticism.
          Yes of course it's the matter for shareholders for they are the owners of the company.

          But do you really think the chief of IoD (that's Institute of Directors) made his view public, do you think he is a major Barclays shareholder?

          The reason he voices it is because some greedy **** on the top puts Directors in general into major disrepute.

          btw, the reason I am not shareholder of Barclays is because I have no confidence in their management, if the bank was actually well run by people who answer to shareholders and act in their interest (as the law requires) then I would not mind getting a few shares.

          Comment


            #6
            I will add that Simon Walker is hardly an entrepreneur or businessman. He is nothing more than a glorified "spin doctor"
            Director General | IoD
            Let us not forget EU open doors immigration benefits IT contractors more than anyone

            Comment


              #7
              Originally posted by AtW View Post
              Yes of course it's the matter for shareholders for they are the owners of the company.

              But do you really think the chief of IoD (that's Institute of Directors) made his view public, do you think he is a major Barclays shareholder?

              The reason he voices it is because some greedy **** on the top puts Directors in general into major disrepute.

              btw, the reason I am not shareholder of Barclays is because I have no confidence in their management, if the bank was actually well run by people who answer to shareholders and act in their interest (as the law requires) then I would not mind getting a few shares.
              Then there are obviously enough shareholders who value Bob Diamonds contribution enough to support him. If there was not he would be out of a job.
              Let us not forget EU open doors immigration benefits IT contractors more than anyone

              Comment


                #8
                Originally posted by DodgyAgent View Post
                Then there are obviously enough shareholders who value Bob Diamonds contribution enough to support him. If there was not he would be out of a job.
                Nah bollox - the reason he (and other FTSE firms) get away with this tulip is because major shareholders are often pension funds who accentially rubber stamp whatever management proposes, possibly for reasons of avoiding any responsibility for their actions (if they vote against and things don't work out then they'd be seen at fault).

                You really don't get it do you? Read again:

                "three times more in bonuses to top executives than it does in total dividends to all its shareholder"

                IMHO, he is not doing his job as a director who is LEGALLY REQUIRED to act in shareholder interests, just how the **** paying so much more money to executives (him included!) to leave small part of pie for OWNERS is fulfilling his legal duties?

                Comment


                  #9
                  Originally posted by DodgyAgent View Post
                  I will add that Simon Walker is hardly an entrepreneur or businessman. He is nothing more than a glorified "spin doctor"
                  Director General | IoD
                  There are now plenty of shareholders who voice their views - the reason Simon is voicing his opinion (finally) is because in my view he is concerned with shareholders taking more active role in making sure companies are run by directors (whom Simon represents) act in interests of shareholders. This is a very bad trend for those directors who are used to creaming off the top, perhaps in his view Bob Diamons is getting too greedy which would inevitably rock the boat.

                  Comment


                    #10
                    Originally posted by DodgyAgent View Post
                    Then there are obviously enough shareholders who value Bob Diamonds contribution enough to support him. If there was not he would be out of a job.
                    Barclays share price -



                    Bob isn't doing a very good job despite his £17 mln, eh?

                    Comment

                    Working...
                    X