Barclays CEO Bob Diamond gets $10.6 million bonus

By @ibtimes on

Bob Diamond, the new chief executive of British bank Barclays Plc, was paid a bonus of 6.5 million pounds ($10.6 million) for last year and received a similar amount in shares under a long-term plan.

His bonus was topped by the two new heads of the bank's investment bank arm - Jerry del Missier and Rich Ricci - with each paid over 10 million pounds, according to pay details released by the bank on Monday.

Diamond's bonus was less than the 10 million pounds media reports had speculated that he was in line for and less than what he could have received amid continuing scrutiny of bankers' pay in the UK, a person familiar with the matter said.

Diamond is one of the highest paid bankers in Europe and could prove to be the best paid UK bank CEO for 2010.

The bank's annual remuneration report showed he was paid 6.75 million pounds for last year, including his 250,000 base salary. He also received 2.1 million shares under long-term performance plans (LTIPs) in place over the last five years, worth 6.6 million pounds at current prices.

He could also receive shares worth 2.25 million pounds under LTIPs announced on Monday that depend on performance over the next three years.

Diamond took over as chief executive at the start of this year after running the bank's investment banking division.

The new co-CEOs of Barclays Capital, del Missier and Ricci, were paid 10.9 million pounds and 10.6 million respectively for 2010, Barclays said under new disclosure rules required of UK banks.

Diamond's award will not include any upfront cash. It will consist of deferred shares and the rest in an instrument that is linked to Barclays' capital strength and only pay out if its core Tier 1 capital adequacy ratio stays above 7 percent.

He waived his bonus for 2009 and 2008 but was paid 21 million pounds for 2007 and received big payouts in previous years which prompted former senior UK politician Peter Mandelson to describe him last year as the unacceptable face of banking.

Barclays and its investment bank arm fared better than most rivals during the financial crisis, however, and emerged as one of the relative winners. Unlike Royal Bank of Scotland and Lloyds Banking Group it avoided taking taxpayer bailout cash, opting to instead raise funds with wealthy Middle Eastern investors.

HSBC said last week its new chief executive, Stuart Gulliver, was paid 6.2 million pounds for last year, when he ran its investment bank.

(Reporting by Steve Slater; Editing by Louise Heavens and Erica Billingham)

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