Diamond faces calls to return share awards

BOB Diamond, who lost his job yesterday, now stands to lose millions of pounds worth of unvested shares as Barclays directors prepare to repossess the former chief executive’s bonuses.

Sources close to the matter said yesterday that Diamond, who resigned as boss of Barclays yesterday after the bank was shamed for rigging interest rates, faces having his share awards rescinded if he does not relinquish them himself.

Speaking to reporters yesterday, Barclays’ new chairman Marcus Agius said the bank has “not got around” to dealing with the issue of Diamond’s pay. “We are hours into this situation. Give us a chance,” he added.

The amount Diamond stands to lose is unclear, as his future bonuses are subject to a variety of conditions, but he is set to receive millions of pounds worth of deferred shares from previous bonuses and future shares from long-term incentive schemes.

Diamond, who joined Barclays in 1996, was paid a £1.35m salary last year, and over £5m worth of deferred shares in just the past two years.

The banker’s pay was rejected by 32 per cent of shareholders at Barclays’ general meeting in April.