Barclays plc's (NYSE:BCS) $13.5 billion sale of Barclays Global Investors to BlackRock Inc. makes Barclays' president Robert Diamond Jr. "The Master of the Universe" of the moment because he personally earns $36 million from the deal, according to
The Wall Street Journal.
Yes, that payout is
"unusually large," due to the 300,000 shares and share options he acquired in BGI. As the Journal points out:
"The payout from BGI dwarfs Mr. Diamond's 2008 salary of £250,000, and
stands in contrast to the tough stance the bank took on executive pay
earlier this year. Mr. Diamond and other executive directors received
no bonuses for 2008, and the bonus pool for staff was reduced by around
50% from the prior year."All of the publicity "Bob The Builder" has been getting may make the folks over at
FTAlphaville want to yak. However, they do refer to a really interesting quote in their roundup of all of the media attention. The quote is from The Sunday Times: "
Right now Diamond is trying to claim the
biggest prize of his career, to take his bank into a tier previously
dominated by the likes of Citi, UBS and other fallen stars."And while Citigroup Inc. (NYSE:C), UBS and those other fallen stars are winding down, Diamond's strategy is to grow. That's really an interesting one at this point in time because it mostly has to do with the firm's acquisition of Lehman Brothers Holdings Inc. assets, and the fact that competition in i-banking right now has decreased due to the economy, as
The Times points out.
"There is a growing consensus that the acquisition of Lehman's business in
America was a transformational deal. This week Diamond will set out the huge
opportunities available to Barclays Capital in a two-day investor and
analyst presentation. His plan is to turn the division into a 'top three
global investment bank.' This new equity business has been bolted on to its
existing operation where it is a top three global player in currency trading
to issuing and underwriting bonds to commodities. ...
The incoming corporate-finance team will have to wheel in the big deals,
allowing Barclays Capital to use its skill in capital markets. Del Missier
said: 'What bankers have become is those individuals that deliver the firm
to the client -- they make that client relationship work and it is not just
the fees. When the M&A mandate is won that is just the beginning of the
discussion, not the end.'
"Although Diamond may be
ramping up the firm for business, it's doubtful the firm will acquire any more operations with the capital it receives from the deal until its capital position stabilizes. As Dealscape's Matthew Wurtzel wrote last week: "It's doubtful that the firm
would seek any acquisitions until done integrating the firm, unless
another distressed opportunity arises. The uncertainties of both the
markets and regulatory regimes in the U.K. and U.S. might also keep
Barclays on the sidelines for awhile."
Maybe the dealmaking pause will give Diamond some time to enjoy his extra cash.
- Maria Woehr
Continue reading below
