Barclays criticised over pay

BARCLAYS has been criticised for paying a £5.75 million tax bill for its chief executive, boosting his pay for 2011 to almost £25m, despite a fall in profits.

Bob Diamond received £16m in salary last year along with benefits and share awards from previous years. The tax payment related to his move from the United States to London while his annual bonus amounted to £2.7m. His salary also includes £474,000 of benefits including chauffeur, private medical insurance and financial advice.

The payout came despite a fall in pre-tax profits of 3 per cent, to £5.9 billion, and amid a heated debate on the bonuses of senior bankers.

Lord Oakeshott, the Liberal Democrat peer who resigned from the front bench over the government’s banking policy, said: “The only tax Barclays pay seems to be for Bob on his bonus.”

Putting aside the previous share awards and the new tax payment, Diamond was awarded £6.3m last year, dwarfing the pay of Stephen Hester, chief executive of state-controlled RBS, who received £2.8m.