Barclays faces shareholder rebellion on the Southbank

London's Royal Festival Hall is world-renowned for its acoustics but the building on the Southbank will resonate to discord on Friday morning as it plays host to Barclays' annual general meeting (AGM).

The lack of harmony arises from a group of shareholders who believe executive pay does not reflect the share price performance.

In the 12 months since the previous AGM Barclays' stock is down 29.6%, despite a significant recovery since the beginning of 2012.

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While shareholders have had to absorb these losses, executive pay is marching onwards. The Chief Executive Bob Diamond received £6.3m in 2011, split between a salary of £1.35m, a bonus of £2.7m and long-term incentive payments of £2.25m.

These numbers will strike many people as high, but Diamond and his Finance Director, Chris Lucas, agreed to only take half of their available bonuses.

Nevertheless some shareholders, mainly British institutional investors like pension funds and insurance companies, are frustrated at the pay levels over a period when their holdings have dropped by one third. They appear determined to make those objections very clear at Friday's meeting.

There are two resolutions through which shareholders can express their frustration. The first is on the remuneration itself, the second on the re-appointment of the chair of the remuneration committee Alison Carnworth.

It is expected both resolutions will go the way the board wishes, but with "votes against" at around the 30% level. This may be enough to give Carnworth food for thought when she starts assessing pay for this year.

BS