Bob Diamond to forgo all bonuses

Bob Diamond to forgo all bonuses
Bob Diamond
(C) World Economic Forum. swiss-image.ch/Photo by Moritz Hager

The Board of Barclays PLC has reached agreement with Bob Diamond on various matters arising subsequent to his resignation last week.

Diamond (pictured) has voluntarily offered to waive all of his unvested deferred bonus awards and long term incentive share awards, which, it has been estimated, could total £20 million.

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 Diamond’s outstanding unvested deferred bonus awards and long-term incentives will lapse, with no compensation made in respect of the lapsed awards.

However, consistent with his contract of employment, 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 going forward.

The Board has agreed with 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.

“The Board deeply regrets the circumstances that led to Bob resigning his positions at Barclays,” said Marcus Agius, Barclays’ chairman.

“Despite having no personal culpability, he recognises more than anyone the negative attention that they have generated and has taken characteristically strong action to address that. These circumstances do not detract in any way from the tremendous legacy that Bob has left at Barclays, and his actions are clear indications of his commitment to the institution to which he has contributed so much.”

Diamond said: “For the past 16 years I’ve 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.”