Bob Diamond, Barclays' CEO, has recieved a bonus package worth £6.5 million ($10.57 million) on top of his £250,000 salary for 2010, despite only taking the position at the start of 2011.
Mr. Diamond's bonus package was split into £1.8 million in shares and a further £4.7 million in shares and contingent capital, even though he only took the reigns of Barclays at the start of this year. His predecessor, John Varley (who was in charge during 2010), received a bonus of £2.2 million as well as a salary of £1.1 million.
Barclays is recording pre-tax profits of £6.07 billion for 2010, which is almost a third on top of 2009's £4.78 billion.
Disclosure of Salaries
Barclays agreed to disclose the salaries of their most successful non-board executives, as noted in the "Project Merlin" deal, the highest of which was £10.9 million plus a long-term bonus incentive worth £3.3 million.
Project Merlin
The Project Merlin deal, confirmed in February, ensures that banks chop their bonuses and lend £190bn on businesses this year (including £76bn for small businesses). Four banks including RBS, HSBC, Lloyds and Barclays agreed to publish what their top five earners are paid, and from 2012 it will be law that all banks publish what their board members are paid. The idea of Project Merlin is to clarify exactly what the highest earners are paid and make their payment figures more transparent for the public as well as the government.
Diamond Geezer
Mr. Diamond himself has caused controversy by stating that the time for banks apologising has passed. The general secretary of the Unite union, Len McLuskey, commented, "Bob Diamond tries to convince taxpayers that the era of remorse and regret within banking is over, yet he has no shame in pocketing a seven-figure bonus."
Not Alone
HSBC has paid Stuart Gulliver (CEO) £6.2 million, including a £5.2 million bonus, and RBS boss Stephen Hester will receive a bonus of £2 million for 2010.
All in all, Barclay’s five non-board top-earners, as agreed in Project Merlin, have disclosed that they received £38.3 million and £10.8 million in incentives for 2010.
Coalition Attacked
Labour leader Ed Miliband warned that the Coalition government has not learned from the crisis and insisted that Chancellor George Osborne should implement extra tax for bankers’ bonuses. Angela Knight of the British Bankers’ Association retorted that, whilst some of its members got it wrong, the industry had been reforming “radically” since the economy collapsed in 2008.
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