Barclays chief Bob Diamond could receive £27m in pay, bonuses, shares and other benefits
A trio of top bankers are being lined up for pay packages worth a total of £42million.
On a ‘day of shame’ for banks, a flurry of disclosures from the City revealed the jackpot awards for the bosses of Barclays and state-backed Lloyds and RBS.
At Barclays, no fewer than 238 individuals will pocket at least £1million in bonuses.
The figures emerged as Business Secretary Vince Cable prepared to warn that Britain’s economic recovery will be ‘throttled’ unless the banks start lending to small businesses again.
He will use his speech at the Lib Dem spring conference in Gateshead today to say that firms are being scuppered by the banks who are failing to lend.
Yesterday it became clear that:
- Barclays chief Bob Diamond could receive £27million in pay, bonuses, shares and other benefits;
- 238 senior staff at Barclays received average bonuses of £1.2million while 386 staff at RBS pocketed £820,000;
- Lloyds and RBS chiefs Antonio Horta-Osorio and Stephen Hester are in line for awards worth up to £8.2million and £7.9million respectively, despite presiding over combined losses of £5.5 billion last year;
- Incompetence by executives led Bank of Scotland to the brink of collapse, according to a stinging report by the City’s watchdog. Liberal Democrat peer Lord Oakeshott said: ‘This day of shame for Britain’s banks must make us bolder and faster to clean out the stinking stables.
‘We control RBS and Lloyds so we should make them lend, with no bonuses until they do.’
Lloyds and RBS chiefs Antonio Horta-Osorio (left) and Stephen Hester (right) are in line for awards worth up to £8.2m and £7.9m respectively, despite presiding over combined losses of £5.5bn last year
The troubled bank has been criticised over tax avoidance claims and a dip in profits, but has made huge payments to senior staff
The three banks slipped out their figures yesterday, hoping that on a Friday there would be less media coverage.
Barclays was first to publish the pay of its top executives, including boss Bob Diamond – once branded the ‘unacceptable face of banking’ by Lord Mandelson.
Some of this is share awards from previous years that he cashed in and future share awards he can realise in several years’ time.
It includes £5.7million that the bank stumped up to pay an increase in his tax bill when he moved to London from the U.S.
Lord Oakeshott said: ‘Bob Diamond spits in the face of the British sense of fair play while we still have to guarantee his casino.
‘Helping yourself to £27million after your bank has just been caught trying to cheat taxpayers out of £500million is simply beyond the pale.’
Less than two weeks ago Barclays was prevented from using two ‘highly abusive’ loopholes to dodge tax.
Despite the furore over Mr Diamond’s pay, two other unnamed senior executives received pay and bonus awards last year of £6.7million and £6.5million.
It is thought that these executives are Rich Ricci and Jerry Del Missier, the co-heads of Barclays’ investment banking arm.
Barclays’ chairman Marcus Agius defended the bank’s bonuses. He said: ‘Barclays needs to operate commercially and that includes setting remuneration for our executive directors appropriately.’
Data provided by Barclays shows that £100 invested in shares in 2006 was worth just £29 at the end of 2011.
RBS and Lloyds, backed with £66billion of taxpayers’ money, sneaked their pay reports out late in the day.
Stephen Hester, the chief executive of RBS, stands to get a total package of £7.9million.
He gave up a £963,000 bonus earlier this year, bowing to intense public pressure, but his package includes deferred bonuses paid in shares of up to £6.2million which can be realised in 2014 and 2015. The highest paid boss at RBS for 2011 was U.S. executive Ellen Alemany, who received a total of £4.5million.
John Hourican, the man responsible for winding down RBS’s failing investment bank at a cost of over 3,500 jobs, netted £3.2million.
He will also receive £4.19million at the beginning of April under a share incentive scheme relating to 2009.
Lloyds boss Antonio Horta-Osorio, who waived a £2.4million bonus after taking two months’ leave due to exhaustion, was handed shares worth a maximum of £3.2million, which he can realise in 2015. He is also in line for shares worth up to £2.4million in 2014.