On executive pay and trade union nonsense

Hobbes, this time around the target is Bob Diamond, from Barclays. After 12 years with the bank, he reportedly took home £21m ($42m) in pay and bonuses last year.

The figure includes a miser £250,000 basic salary, plus shares worth up to £14.4m and a £6.5m cash bonus.

The figure includes his basic salary of £250,000, plus shares worth up to £14.9m and a £6.5m cash bonus. Performance-related bonus for the three years ending December 31 was based in the securities unit exceeded a £2bn economic profit target for the period.

He got a 19% pay rise but the division he oversees, investment banking, accounted in 2007 for 45% of Barclays’s pretax profit. By the figures, the guy must be worth the money when he gets 0.29% of the bank’s £7.08bn annual profits.

According to the BBC website:

[…] the Unite union, said the figure would be “received with astonishment” by Barclays staff.
“The millions of pounds awarded to the directors are only possible because of the hard work put in by staff,” Unite official Keith Brookes said.
“As a thanks for all this hard work, staff will receive small recognition of their efforts in the form of a cost-of- living linked pay rise and in particular the cashiers will remain very poorly paid,” he said.

Shall we remind trade unions that his basic salary has been frozen since 1999? I wonder how many cashiers would have agreed to keep their 1999 salary and leave the rest to the wind of the markets.

Plus Barclays has weathered the storm better than many other banks including the ABN Amro fiasco.

Without men like Mr Diamond, there are not branches to staff. Trade Unions, open your eyes before it is too late, you wouldn’t even see the goose of the golden eggs were he going out with your teenage daughter.



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