Barclays boss Diamond set for £11m

It's looking increasingly likely that Barclays boss Bob Diamond will bag an overall £11m bonus package. It's thought Barclays has made around £6bn in full-year profits - around £700,000 an hour.

It's also likely Barclays will press ahead with distributing a £1.5bn bonus pool to staff, while claiming it has hit key loan targets to small and medium-sized businesses.


Diamond life

Bob Diamond's bonus bonanza comes hard on the heels of pleas for pay restraint. Although Barclays profits are huge, they are not as sizeable as a year ago. Diamond's basic remuneration package is £1.35m though this is linked to bonuses (£2m-3m) and a long-term bonus share scheme. That takes his overall pay packet to close to £11m.

Many of Barclays 10,000 workforce will be picking up millions in bonuses. Yet it's also likely that Barclays will be looking hard at cutting middle-management costs, as well as further down the food chain deeper into 2012. Such a juxtaposition is not a comfortable one given the chunky bonuses being handed round at top table.

Tax base

Or comparisons with much of the wider UK workforce, struggling with increasing job insecurity and surging inflation. Bear in mind that RBS boss Stephen Hester deliberately waived his own £1m bonus this year. Diamond still has room, or time, to make a gesture and take less.

Meanwhile the TUC claims that ending corporation tax relief for pay and bonuses worth more than 10 times average annual earnings (£26,200) would raise £1.7bn a year if applied to the banking and financial services sector.

The scale of bank losses at the height of the credit crunch certainly allowed many banks to knock around £19bn off future tax bills. Barclays admits it paid just £113m in UK corporation tax in 2009 despite hauling in £11.6bn of profits. How much will it pay this year?
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