Barclays' Diamond waves millions in pay-off

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Barclays' Diamond waves millions in pay-off

Barclays' Diamond waves millions in pay-off
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Barclays ex-Chief Executive Bob Diamond has waived his bonus this year as well as various share and other awards totalling up to 25 million euros.

The bank’s chairman Marcus Agius said Diamond – who quit over an interbank interest rate rigging scandal – will get “around” 2.5 million euros – that is one year’s salary and pension contributions, even though under his contract he is entitled to only six months’ worth.

Agius appeared before a hostile panel of lawmakers on Tuesday as part of its investigation into a row that has caused widespread public anger and which threatens to draw in a dozen more global banks.

Agius was the first Barclays executive to quit when the scandal erupted last week but that was not enough to protect Diamond, who was forced out a day later. The chairman has had to stay on to find a successor to Diamond.

In a statement Diamond said: “It is my hope that my decision to step down and today’s agreement on my remuneration will help close this chapter and allow Barclays to move forward and prosper.”

Agius told the parliamentary inquiry that Diamond had to resign because he lost the support of financial regulators after the scandal emerged last week, adding that the American former chief executive was “utterly depressed” after he was informed of the decision.

“We concluded that we had no choice but to call for his resignation,” Agius said.

“We went to see him (the Bank of England governor) and we had a conversation … at which it was made very plain to us that Bob Diamond no longer enjoyed the support of his regulators,” he said.

Agius described his bank’s relationship with financial regulators as strained, acknowledged however the scandal had dealt a devastating blow to Barclays’ reputation.

Diamond last week admitted Barclays’ traders had behaved reprehensibly in rigging rates.

“The solution we devised was that the four senior executive officers who were on the deck when these matters occurred should recognise their responsibilities by forgoing their bonuses,” Agius said.

“We hoped obviously that would be deemed proportionate. Evidently we were wrong because the public outcry afterwards was extraordinarily great.”