Barclays chief executive Bob Diamond has agreed to a change in the terms of his £2.7m deferred bonus for 2011 following pressure from shareholders.
Earlier this month the Association of British Insurers issued an “amber top” alert to its members over Diamond’s £17.7m pay packet.
Investor group Pensions & Investment Research Group also advised its members to vote against the bank’s remuneration report.
Barclays says both Diamond (pictured) and the firm’s group finance director Chris Lucas have now agreed to subject their bonuses, which are awarded in shares and deferred for three years, to a further condition which means 50% will not be paid out in full until Barclays return on equity exceeds its cost of equity.
In a statement, Barclays says: “Recognising the strength of opinion expressed by some shareholders and the executive directors’ confidence in the future performance of the bank, consistent with public commitments and shareholders’ expectations, Bob Diamond, chief executive and Chris Lucas, group finance director have volunteered to subject their 2011 bonus awards, which were awarded all in shares and fully deferred over three years, to a further condition.
“That condition is as follows: that one-half of their deferred bonus award that may vest in each year will not pay out until Barclays return on equity exceeds its cost of equity and, if that condition is not met, the potential pay out caught by it will be subject to lapse if it is not met within three years from the date of the award.
“It has been agreed to apply this further condition.”