Barclays Plc may pay new Chief Executive Officer Antony Jenkins 31 percent less than Robert Diamond, the predecessor whose compensation drove a U.K. cabinet minister to dub him the “unacceptable face of banking.”
Jenkins, a 51-year-old Briton and veteran of Barclays’s consumer division, will earn as much as 8.6 million pounds ($13.6 million) a year in salary, bonuses and pension payments, according to a statement from Britain’s second-largest lender today. Diamond, the U.S.-born investment banker who was forced to resign last month, was awarded as much as 12.5 million pounds per year in pay and other benefits.
“Bob was overpaid, and that’s been the whole issue,” said Gary Greenwood, a Liverpool, England-based analyst at Shore Capital Group Ltd. “This guy could still potentially get a lot of money. The financial-services industry does seem to carry very high bonuses compared with other industries.”
Jenkins will receive a salary of 1.1 million pounds, as much as 2.75 million pounds in bonus, and about 363,000 pounds as an alternative to a pension payment, Barclays said today. From next year, he is eligible for as much as 4.4 million pounds per year in long-term bonuses.
Diamond earned at least 120 million pounds in pay and bonuses after he became a Barclays board member in 2005, or about 17 million pounds per year, according to Manifest Information Services Ltd.
Diamond became CEO in 2011 after running the investment bank, formerly branded as Barclays Capital. Former Business Secretary Peter Mandelson had dubbed him the “unacceptable face” of the banking industry in 2010.
In 2011, Diamond was paid 1.35 million pounds in salary, as much as 2.7 million pounds in bonus and as much as 2.25 million pounds in long-term incentives, a 5.75 million-pound payment to cover his personal tax bill and 474,000 pounds in benefits.
“Typically, retail bankers don’t pay themselves as much,” said Vivek Raja, an analyst at Oriel Securities Ltd. in London. “That may indicate Barclays is moving to more of a retail banking model rather than investment-banking dominated.”
In July, Barclays announced the resignation of Alison Carnwath, who headed the bank’s compensation committee and approved Diamond’s pay package. About 21 percent of Barclays shareholders opposed her re-election as a non-executive director in April amid criticism from investors the lender was enriching employees while failing to hit its own profitability targets.