Lord Mandelson Attacks Salary of Barclays’ Bob Diamond
April 6, 2010
Lord Mandelson, the First Secretary of State and Business Secretary, has personally attacked Bob Diamond, the American president of Barclays. He has branded the bank boss as unacceptable in the face of banking due to taking an unjustifiable £63 million salary.
Madelson believes that Diamond didn’t earn the money through building or adding value to business or by creating long-term economic strength, but only by making deals and shuffling paper. He challenged for anyone to justify the payout if they could, adding that the very rich shouldn’t be held accountable under different morality standards from anyone else.
These comments were also repeated on Sunday Live with Adam Boulton, the Sky New Sunday morning show. He said that the public wants bosses of banks to have a little more humility and modesty and shouldn’t be provoked by doing what Diamond has done.
However, Barclays, which is the third largest bank in Britain, says that the £63 million salary figure is completely fabricated, as Diamond’s basic salary is £250,000. A spokesman also said that the company president didn’t take any bonuses in 2008 or 2009. However, it’s believed that the boss earned more money last year through selling his shares in a bank-owned business and through a long-term incentive scheme.
The attacks come after about 23 business leaders backed a plan from the Conservatives to cut part of the National Insurance increase that Labour plans to introduce if they win power. The bosses say that the increase may hurt the economy’s recovery, as it will be a tax on jobs. Mandeslon said that the plans are cynically deceiving and won’t be reached unless VAT is increased.
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