Diamond departs on full salary but forgoes £20m bonus
Outgoing chairman Marcus Agius told MPs on Tuesday that Diamond would pass up his bonuses
By CFOWorld staff | CFO UK | Published 14:34, 10 July 12
Barclays former boss Bob Diamond is to receive a year's salary and a cash payment together totalling £2 million but will forgo bonuses worth up to £20 million, the bank’s outgoing chairman told MPs on Tuesday.
Diamond resigned last week after mounting pressure to quit his job because of a £290 million fine by US and UK regulators for the bank’s involvement in Libor manipulation.
Marcus Agius, the outgoing chairman of Barclays whose traders manipulated the global benchmark interest rate, appeared before a parliamentary inquiry into the rate-rigging scandal that 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. Agius has had to stay on to find a successor to Diamond.
"Bob Diamond has voluntarily decided to forgo any deferred consideration and deferred bonuses to which he otherwise would have been entitled to," Agius, 65, told the cross-party Commons select committee.
"The maximum amount would be £20 million."
Barclays confirmed the payoff arrangement in a separate statement which quoted Diamond as saying he hoped his decision would help the bank move on.
"The wrongful actions of a relative few should not detract from the outstanding work that Barclays employees carry out each day on behalf of clients and customers around the world," he 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."
Barclays was fined more than £290 million for its part in manipulating the London Interbank Offered Rate.
Agius said 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.
photo credit: Reuters
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