5 Damning Comments About Top Firm's Pay Policy

Pot Of Gold

Sounds like it was quite a bun-fight.

Alison Carnwath, the former Head of Remuneration over at Barclays, looks like she had a bit of a torrid time this time last year, discussing 2011 compensation for then CEO Bob Diamond and the firm's investment bankers. (Carnwath eventually resigned in July 2012).

Here's what she told UK lawmakers earlier this week:

1. 'I disagreed with the board Chairman's recommendation on Mr Diamond's annual bonus for 2011. I recommended zero. I was alone in my view both on the committee which I chaired and on the board'.

2. 'At Barclays the (remuneration) committee was aware that pay was at the top end of the scale and asked the chief executive on his appointment to take a leadership position and clarify the pay culture to staff. Mr Diamond was reluctant to do this and reluctant to accept pay at Barclays was high, particularly in the investment bank'.

3. 'In my view Barclays were demanding too much patience from their shareholders and were insufficiently sensitive to the political and economic environment and the hostile attitude to banks generally'.

4. 'Vocal shareholders were quite clear on the need to reduce pay at Barclays and this message was communicated in no uncertain terms to the chairman, the company secretary, the HR personnel, myself and Mr Diamond'.

5. Cranwath said that Diamond had was 'overly protective of his investment banking franchise'.

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