The National Association of Pension Funds (NAPF) commented on Bob Diamond’s severance package announced by Barclays today.
David Paterson, NAPF Head of Corporate Governance, said:
“Agreement that Mr Diamond will only receive his basic pay and benefits is to be welcomed, given the circumstances. The extent to which clawback can be applied to previous years’ bonuses needs clarification, and reaches well beyond the CEO.
“Barclays’ announcement of ‘an audit of business practices’ should include a full review of pay policy. This is an essential step in rebuilding confidence in the bank, and needs to go beyond senior executives alone. It should also be firmly based on the premise that shareholders, as the providers of risk capital, must earn a sustainable return on that capital before anything is available for distribution to staff.”
Notes to editors:
1. The NAPF is the leading voice of workplace pensions in the UK. We speak for 1,200 pension schemes with some 15 million members and assets of around £800 billion. NAPF members also include over 400 businesses providing essential services to the pensions sector. Contacts:
Paul Platt, Head of Media and PR, NAPF, 020 7601 1717 or 07917 506 683, [email protected]
Christian Zarro, Press Officer, NAPF, 020 7601 1718 or 07825 171 446, [email protected]