Barclays CEO Agrees to Forego Bonus of Up To $31 Million
Barclays former chief executive officer Robert Diamond agreed to give up an additional bonus of up to $31 million, as pressure from British lawmakers mounted on the former chief over his role in the Libor interest-rate-rigging scandal and its aftermath reported the Wall Street Journal Tuesday.
Chairman Marcus Agius disclosed Diamond’s forfeiture at a Parliamentary hearing that served as another forum for lawmakers to raise questions regarding the former CEO’S running of the bank.
Agius who is also reportedly resigning from the bank said Diamond, who previously agreed to forego his 2012 bonus, will still receive severance and pension payments totaling around £2 million, which is twice the amount his contract stipulates in the event of his resignation.
Diamond resigned on July 3.
According to the WSJ, the larger severance is meant to compensate him for agreeing to a longer advisory period following his departure.
However, Diamond came under immediate pressure to hand over the remaining £2 million of his payoff to charity by MP John Mann to show “true contrition”.
David Hillman of the Robin Hood Tax campaign said “It would take the average Briton a lifetime to earn the same amount,” reported the Guardian.
The scandal that has involved allegations that bank employees attempted to manipulate Libor has resulted in a number of resignations from the bank’s corporate suite, with chief operating officer Jerry del Missier resigning along with Diamond and Agius.
Diamond said in a statement:
“The wrongful actions of a relative few should not detract from the outstanding work that Barclays employees carry out each day on behalf of clients and customers around the world. It is my hope that my decision to step down and [the] agreement on my remuneration will help close this chapter and allow Barclays to move forward and prosper.”