By Simon Miller
Barclays’ chief executive Bob Diamond and group finance director Chris Lucas have agreed new conditions to their bonuses following shareholder demand.
Their 2011 bonuses – which were awarded all in shares and fully deferred over three years – will now see one-half that may vest in each year not pay out until Barcalys return on equity exceeds its cost of equity.
If that condition is not met, the potential pay out caught by it will be subject to lapse if it is not met within three years from the date of the award.
Barclays said that Diamond and Lucas volunteered to the change in the bonuses because they recognised “the strength of opinion expressed by some shareholders, via those meetings, and the Executive Directors’ confidence in the future performance of the bank”.
In a statement, Barclays said it was “fully committed to ensuring that a greater proportion of income and profits flow to shareholders notwithstanding that it operates within the constraints of a competitive market”.