Investors Tell Diamond to "Tone Down" BonusST
Next time you think we have it bad here with all the Dodd-Frank hullabaloo, imagine if you worked in a country where your bank actually had to care what investors thought. Such is the dilemma facing Barclays CEO Bob Diamond, as he has been warned to "tone down" his annual bonus before the number has even been announced.
It's no secret that banker bonuses are a hot button issue in the UK, much more so than they are here. Diamond made a respectable £1.35 million in salary in 2011, and his bonus could be as much as 2.5 times that. Unfortunately for Bob, that's a little more than UK investors are willing to shell out for his stewardship of the bank.
The newspaper quotes Robert Talbut, chairman of the investment committee at industry body the Association of British Insurers, saying that Diamond's bonus--if press reports are accurate--isn't an appropriate "signal of the change required to improve the investment case at the bank."
The article goes on to mention in passing the fact that RBS CEO Steven Hester was forced to forfeit his entire bonus after the public outcry that he'd be paid even one penny more than his salary.
So again, the next time you're feeling sorry for yourself about all the ill will towards Wall Street in the US, at least take comfort in the fact that our brethren in The City have it far, far worse.
On the other hand, what does a bank CEO even do anyway?