I know, everyone´s saying that bankers are overpaid for failure. Disgusting, isn´t it? However, we do seem to have an example of a bank getting it right.
Mr Diamond was paid £250,000 in 2008, down from £21m in 2007. He also received a previously disclosed cash award of £7.5m, which was a pay-out for an incentive programme from 2005 to 2007. For that period Mr Diamond was also awarded shares worth almost £19m at the time they were allocated.
However, Barclays\’ annual report for 2008, published on Tuesday, revealed that the total value of Mr Diamond\’s shareholding in the bank fell by £50m to £23.5m.
So his net return on his year´s work is (whether you say that delayed bonus applies to this year or not) either (18,750,000) or (26,250,000).
Just to note that by convention numbers in brackets are negative numbers. That is, that he LOST between 18 million and 26 million pounds by turning up to work last year.
That´s a pretty good incentive don´t you think?
It should also be noted that Bob Diamond’s division has kept Barclays out of the Government’s maw… He deserves every penny
Indeed. I’ve no complaint with workers being paid large salaries if they create large amounts of wealth.