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Diamond agrees to give up £20m bonus

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11/07/2012
Barclays former chief executive Bob Diamond has opted to give up a deferred bonus owed to him from his former employer, worth up to £20m.

Speaking at a Treasury Select Committee (TSC) hearing, Barclays’ chairman Marcus Agius said Diamond (pictured) – who resigned from the bank last week – has opted to forgo any deferred bonus he may be owed.

“Shortly before I came here we received a notice about what is going to happen,” Agius told MPs.

“Bob Diamond has voluntarily decided to forgo any deferred bonuses.”

Agius said the most Diamond would have been due under the scheme was £20m.

A stock exchange announcement released by Barclays shortly afterwards said: “Mr Diamond has voluntarily offered to waive all of his unvested deferred bonus awards and long-term incentive share awards. This is in addition to his previous decision to forgo any consideration for an annual bonus this year.

“The board has accepted this offer, and all of Mr Diamond’s outstanding unvested deferred bonus awards and long-term incentives will lapse, with no compensation made in respect of the lapsed awards.

“The board has asked Mr Diamond to support the transition to the new chief executive as necessary, and he has agreed. Consistent with his contract of employment, Mr Diamond will receive up to 12 months’ salary, pension allowance and other benefits; and he has agreed to forgo his contractual entitlement to tax equalisation.

“The board has agreed with Mr Diamond that he will not receive any future bonus or incentive awards; nor will he receive any further compensation payment in connection with the termination of his employment.”

Agius said in the statement that Diamond had ‘no personal culpability’, but recognises more than anyone the negative attention generated by certain traders, and has taken characteristically strong action to address that.

Diamond himself said: “For the past 16 years I have had the honour of working at Barclays. 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 today’s agreement on my remuneration will help close this chapter and allow Barclays to move forward and prosper.”

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