From what I can see Bob Diamond\’s bonus is all in shares in Barclay\’s.
Something which rather changes matters.
For, do you recall a few years back, the screaming was that it was the payment of bonuses in cash which was the cause of all the problems? Bankers would do stuff this year that they knew would blow up next but who cared as their bonus was in cash and not reclaimable?
We were told that insisting that such bonuses were not paid in cash would solve this problem. Indeed, moving to long term incentive plans, where bankers were hugely interested in the long term performance of the bank, because that\’s where all their money way, would solve this problem neatly.
We now have a system where those top bods are not getting their bonuses in cash. They are getting them in restricted shares, they\’ve got to wait some years before being able to cash them in. Problem, as originally identified, solved.
But the same people are still shouting about bonuses, aren\’t they? So, clearly, their oirginal shouting about shares was not in fact true, was it?