BARCLAYS’ new chief executive Bob Diamond is preparing to receive a pared down bonus for 2010, despite heading up the bank’s investment banking arm last year.
While an investment banking bonus would normally be around £15m-£25m, Diamond is likely to get more of a chief executive’s bonus, in the £6-£10m range, despite only just taking over the lead role at the bank.
It is also likely to be weighted heavily towards shares rather than cash, going beyond new requirements from Europe that at least 50 per cent of any bonus is in non-cash instruments.
However, with bank values depressed, some analysts think that an award in shares could actually be worth more.
Diamond is due to be grilled tomorrow by the prominent Treasury select committee, whose members have promised to give him “a rough ride”.
Committee member John Mann told City A.M. that large payments to bankers come “at the expense of small businesses and industrialists”.
He said: “In the background of the taxpayer having to take a hit for the banks, where’s Mr Diamond and his colleagues’ hit for the recession they caused?”
He added that the difference between those banks that were bailed out and those that weren’t was “wafer thin”.
Diamond was branded “the unacceptable face of banking” by former business secretary Lord Mandelson last year, after being awarded £60m in compensation over five years.
Treasury select committee chair Andrew Tyrie said that his priority is to question Diamond over the competitiveness of retail banking rather than bonuses.