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BarCap execs Bob Diamond, Jerry del Missier, and Rich Ricci might have a portion of their pay packages blocked by a shareholder revolt.
It’s the first year that regulations requires Barclays to provide shareholders with details of what and why it pays its executives. And now, a research body that provides information to institutional investors (read: to Barclays shareholders) has called on all shareholders to block a Barclays pay deal for 2010.
The payment disclosure Barclays provided is “opaque” and has an “overly complex” structure, say the shareholders. The numbers they do understand are obviously too big in their opinion.
Bob Diamond’s is the pay package shareholders are focusing on, although it might not be the biggest at the bank. Diamond might take home £26.85 million in bonus, salary and vested stock that pays out this year, plus a £6.25 million conditional share award ($54.6 million total). Most of it is contractual pay and/or stock that he’s owned for years.
Jerry del Missier by contrast will take home £33 million in vested shares and one of the following five pay packages, which were paid to top BarCap execs (names are not attached to numbers in the new disclosure documents): £10.9 million, £10.6 million, £7.8 million, £5.2 million and £3.7 million in stock and bonuses in 2010.
Translation: del Missier gets $60 million at least ($71 million at the most).
The pay that shareholders might attack is the 23% hike in Diamond’s salary to 1.35 million. Here’s why (we think): the rest is contractual. The salary is the only thing they can build a good legal argument against.
According to CNBC, shareholders might also have an issue with the fact that Barclays used a new financial instrument to pay top executives this year.
See also: Everyone important at BarCap is a guy