Barclays' former Chief Executive Bob Diamond has turned down a £20m severance package, according to the bank's Chairman.
Diamond quit the bank over the LIBOR fixing scandal, which saw Barclays' traders seek to manipulate inter-bank lending rates.
Chairman Marcus Agius told MPs on the Treasury Select Committee that Diamond had decided to forego any deferred bonuses, which could be worth up to £20m.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, in a statement released as Agius sat down in front of MP's, the bank said Diamond would receive up to 12 months' salary, pension allowance and other benefits.
Barclays said Diamond would "support the transition to the new Chief Executive as necessary".
The bank's statement on the details of Diamond's pay-off reads:
"Consistent with his contract of employment, Mr Diamond will receive up to 12 months' salary, pension allowance and other benefits; and he has agreed to forgo his contractual entitlement to tax equalisation going forward.
"The board has agreed with Mr Diamond that he will not receive any future bonus or incentive awards; nor will he receive any further compensation payment in connection with the termination of his employment."
-
The top stocks in the FTSE 100After a year of strong returns for the UK’s flagship index, which FTSE 100 stocks have posted the best performance in 2024?
-
A junior ISA could turn your child’s pocket money into thousands of poundsPersuading your child to put their pocket money in a junior ISA might be difficult, but the pennies could quickly grow into pounds – and teach them a valuable lesson about money
