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Rediff.com  » Business » Ex-Barclays CEO to forgo 20 mn pounds deferred bonuses

Ex-Barclays CEO to forgo 20 mn pounds deferred bonuses

July 10, 2012 18:18 IST

DollarsBarclays' former CEO Bob Diamond, who stepped down last week amid the interest rate rigging scandal, will forgo deferred bonuses worth 20 million pounds (about Rs 171 crore), the British lawmakers were informed on Tuesday.

Diamond's voluntary decision to give up deferred bonuses comes against the backdrop of rising public dissatisfaction over exorbitant pay packets doled out to bankers.

"Bob Diamond has voluntarily decided to forgo any deferred considerations or any deferred bonuses, which he would otherwise have been entitled to," Barclays chairman Marcus Agius told the UK Treasury Select Committee today.

Agius, who has put in his papers last week but would remain at the post till the appointment of next Barclays CEO, said the maximum amount of deferred bonuses would be '20 million pounds'.

He was responding to the panel's queries on Diamond's severance package. Diamond was with Barclays for 16 years.

Barclays, one of the top British banks, is under intense public and political pressure following the entity paying a 290 million pounds penalty to the US and the UK authorities to settle charges of manipulating global benchmark lending rates -- Libor and Euribor.

The development also claimed the jobs of Barclays chairman, chief executive officer and chief operating officer Jerry del Missier resigning in a span of just two days.

Meanwhile, the Wall Street Journal reported that as per his contract, Diamond would receive up to 12 months' salary, pension allowance and other benefits.

"He won't receive any future bonus or incentive awards; nor will he receive any further compensation payment in connection with the termination of his employment," the daily noted.

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