UK bank Barclays has agreed a resignation package with outgoing chief executive Bob Diamond where he will continue to receive his salary, pension allowance and other benefits for up to 12 months but will forfeit a number of bonus awards and incentives, the bank said Tuesday.
(LONDON) — UK bank Barclays has agreed a resignation package with ex-chief executive Bob Diamond where he will forfeit up to 20 million pounds ($31 million) in bonuses and incentives but receive a year’s salary, pension and other benefits worth 2 million pounds. Diamond resigned last week after Barclays was fined $453 million by U.S.
NO BONUS: U.K. bank Barclays has agreed a resignation package with ex-CEO Bob Diamond that calls for him to forfeit up to 20 million pounds ($31 million) in bonuses and incentives, but receive a year's salary, pension and other benefits worth 2 million pounds ($3.1 million).
Earlier today we suggested that while paying 67x for the BG Group is an exercise in sheer desperation and will cost Shell's shareholders dearly, one group stood to profit handsomely: the bankers who were handed the deal on a silver platter, and who stand to make hundreds of millions in M&A fees without even loading up a merger model: the deal was predetermined from the moment the CEO of She
The sum, which needs final approval, is far lower than the $14bn the US had asked the bank to pay in September, the BBC reports.
That looming fine had caused concerns that a failure of the bank could pose a risk to the global financial system.
Credit Suisse also announced a similar deal, while Barclays is now under investigation too.
The sale of residential mortgage-backed securities played a significant role in the 2008 financial crisis.