ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for discussion Register to chat with like-minded investors on our interactive forums.

Barclays Reports Executive Remuneration

Share On Facebook
share on Linkedin
Print

Barclays (LSE:BARC) Chief Executive Bob Diamond earned £6.3m in remuneration last year according to its annual report, made available online today. For 2011, Diamond earned £1.35m in base salary, £2.7m in bonuses, and £2.2m in long-term incentives.

Though Diamond earned £9m in 2010, £2.7m more than 2011, the announcement comes at a time when banking executives have come under increasing scrutiny for their compensation packages during the UK’s greatest economic downturn in recent memory. In January, PM David Cameron appealed to banks to show “proper regard” in rewarding bonuses, and in ensuring that compensation coincides with performance.

Ironically, Chief Executive Diamond was not even Barclays’ highest paid director last year. According to the report, two unnamed senior directors earned £6.7m and £6.5m last year, respectively.

Diamond’s take home pay for 2011 may be even higher, thanks to a so-called “tax equalisation payment” made by Barclays on their Chief Executive’s behalf. Upon being tapped for promotion to chief of Barclays plc last year (Diamond had previously served as head of Barclays Capital, the group’s investment banking arm), Diamond moved from the U.S. to the U.K., incurring roughly £5.75m in one-time taxes in the process, which Barclays eventually paid. Most of the taxes were incurred as a result of capital gains, which are taxed at a higher rate for the top tax bracket in the U.K (28%) than in the U.S. (15%).

A Worthy Reward?

Many are questioning Diamond’s remuneration for 2011, a year when Barclays share price fell by 33% (whereas Britain’s next five largest banks averaged a 30% drop), and return on equity fell to an “unacceptable” 6.6%. This drop in profitability has frozen Diamond’s pay for 2012, though he maintains the bank will hit its profit targets in the immediate future.

Furthermore, just weeks ago, HM Revenue & Customs ordered the bank to pay £500m in taxes it had attempted to to circumvent through a series of “highly abusive” and “aggressive” schemes.

Company Spotlight

Barclays is a British financial institution providing universal banking solutions in retail and business banking, corporate and investment banking, and wealth management.

Irrespective of the news, shares on the London Stock Exchange closed flat today.

References

  1.  Company History
  2. ↑ BBC News
  3. ↑ Bloomberg News
  4.  ADVFN News
  5.  ADVFN Stock Wiki

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com