Diamond turns down £20m payoff - Alert

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.

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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."

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