Joining Varley in giving up their bonuses are head of investment
banking Robert Diamond, consumer bank head Frits Seegers and finance
director Chris Lucas. Barclays is on the verge of a contentious $10.5
billion capital raise that it needs to shore up its balance sheet. The
bank is trying to avoid the U.K. bailout plan by selling a large stake
to sovereign wealth funds in Qatar and Abu Dhabi, but it has faced a
backlash from investors concerned about their own shares being diluted.
Barclays chairman Marcus Agius has sought to avoid the U.K.
government's bailout plan, which limits dividends and executive pay, by
raising money from sovereign wealth funds in Qatar and Abu Dhabi.
Barclays investors have complained the funding from the Persian Gulf is
too costly and will dilute their stakes. As a concession to major institutional shareholders announced Tuesday
morning, the bank will allow them to participate in the new capital
raising at the generous terms afforded the wealth funds, while the
entire board of directors will be put up for re-election and the
executive directors waived any annual bonus for 2008. As at Goldman Sachs, Barclays now has some cover to hand out 2008 bonuses to the rank and file in spite of the bank's mounting troubles. -
George White
See press release
See Dealscape post on Goldman management waiving bonuses
The "no bonus for the CEO" movement is picking up momentum, as Barclays plc's chief John Varley and his top lieutenants will follow in the footsteps of Goldman Sachs Group Inc. and UBS and forgo their year-end money. 
