Jerry del Missier, the former chief operating officer for Barclays Capital who resigned over the Libor scandal is to receive an £8.75 million pay-off from Barclays.
Mr Del Missier, who told a Treasury Select Committee earlier this month that he was acting on orders when he informed traders to continue submitting false Libor rates, is said to have negotiated an £8.75 million pay-off before resigning.
The decision is in contrast to the settlement agreed with former chief executive of Barclays, Bob Diamond, who was forced to give up deferred bonus payments worth up to £20 million and is sure to anger shareholders.
Mr Del Missier was not on the Barclays board which means he is under no obligation to disclose his pay package. The £8.75 million was due to Mr Del Missier in March as part of a long-term incentive award. He did not accept the payment then as the bank was embroiled in controversy over banker bonuses.
Like, Mr Diamond, he could have decided to forego the funds but has decided to take the money.
Tom Powdrill from shareholder lobby group Pirc, said: “This is enough to make you sick. Barclays must make it clear immediately if there was any discretion involved in this settlement, and if so they should make clear which directors approved it.
“In any case this decision is likely to incense shareholders, particularly if any of the pay-off includes rewards relating to the period in which the bank was involved in Libor manipulation.”
Andrew Love, a Labour member of the parliamentary inquiry into banking standards said: “In the light of the circumstances in which Mr del Missier left Barclays it is totally inappropriate that he should be rewarded with a substantial payoff.”
Deborah Hargreaves, chairman of the High Pay Commission, said: “This is staggering. Why on earth should this man get a multi-million pound payoff for resigning in disgrace? This is further proof that the whole system of bonuses needs to be urgently reformed.”
Until now Barclays has refused to comment on Mr Del Missier’s pay-off.
Meanwhile, Alison Carnwath, the chairwoman of Barclays’ remuneration committee, which is responsible for setting executive pay has resigned, apparently due to “personal reasons”.
Reports suggest her departure may have been in protest over the level of pay-off that Mr Del Missier is to receive. She voted against previous pay deals for Mr Diamond and Mr Del Missier but was outvoted by her own committee.
Barclays has announced the appointment of Anthony Salz to conduct an independent review of its business practices.
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