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Diamond facing battle with Barclays to keep £25m pay-off

Rahul Odedra
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Rahul Odedra

Former chief executive Bob Diamond is facing a battle to keep his £25m pay-off from Barclays after it emerged the bank’s board is looking into its legal position on his entitlements.

The board called a late meeting last night to discuss its position in regard to Diamond’s £18m of unvested share options and £4m-plus of benefits, the Telegraph reports.

He is also due more than £2m in lieu of a year’s salary and pension following his departure earlier this week.

Legal arguments could centre on the reputational damage the LIBOR scandal has done to the bank, whose shares have fallen 15% since it broke.

A source close to the board told the paper:

“Barclays needs to establish where it stands legally with regards to Bob’s contract and entitlements.

“The bank is fully aware of the high emotions around this and the need for there not to be any false moves.”

Meanwhile, the resignation of three senior executives at Barclays this week has led to Moody’s and Standard & Poor’s putting the bank’s credit rating on review for a downgrade.