Well, How Much Did He Really Earn?

This is interesting:

Bob Diamond, the US banker who runs Barclays\’ investment banking arm, has cemented his position as one of the highest paid bosses in a FTSE 100 company after receiving almost £36m last year.

The figure comprises £21m in cash, bonuses and shares in addition to £14.8m from a three-year performance plan.

The £21m includes his £250,000 base salary, £6.5m cash bonus, a £11.3m share award held in a trust for three years and £3m of shares which will be received in three years provided performance criteria are achieved. The sum is down slightly from the £22m in 2006.

But his total is boosted by the £14.8m "retained incentive opportunity" – half in cash, half in shares – put in place three years ago when he joined the Barclays board. He received the sum because profits at the investment banking division Barclays Capital exceeded targets – despite the US sub-prime mortgage crisis.

Diamond is one of the highest profile bankers in the City and last year topped the Guardian\’s annual boardroom pay survey. He came out ahead of Bart Becht, £22m boss of Cillit Bang maker Reckitt Benckiser, and Giles Thorley, of Punch Taverns, who earned £11m in 2006.

Diamond achieved the bonus even though Barclays took a £1.6bn hit from the sub-prime crisis in the US and despite ongoing financial woes which have seen billions wiped off share values worldwide. The bank\’s profits in 2007 were £7bn, the same as 2006, and its share price has suffered. The shares Diamond already owns have fallen by £25m during 2007to £51m.

If his restricted stock fell in value by £25 million, does that mean he actually only earned £ 11 million for  year?

2 thoughts on “Well, How Much Did He Really Earn?”

  1. How are these share incentive thingies meant to work? What’s to stop him (or his wife) just laying off the bet?

  2. Pingback: Ganging up on Bob Diamond

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