Ever resigned from a job and received a pay off? Ever resigned from a job knowing that if you did not jump you would be pushed, and received a pay-out? Ever been accused of wrong doing, resigned your job and received a hefty pay-out? Well neither have we, but we know a man who has.
Barclays Bank former boss Bob Diamond was at the helm of the firm during a period of wrong doing. The bank stood accused of fixing the Libor rate, the rate at which money was loaned.
As the man where the buck stopped many wanted him sacked. The least most expected was his resignation. In the end he resigned after a period of time, many believing he had received his marching orders.
In such a position would you expect to receive money? No we think not. It could be argued that it is a pay off to see the back of him but the bank had been stung by crippling fines following the rate rigging scandal. In other words his poor management had cost the business money. As a partly owned bank he had cost the government and UK taxpayers money. He had also cost the users of the bank money.
There is no doubt that he was not alone. Expect a free fall of similar findings about others to follow on. That does not make what was done right. It does however mean that those involved must pay the price to deter others. If the punishment is in effect a slap on the wrist the abuse of power will continue.
Diamond was assured a huge sum of money following his resignation. In the end, sensing the public mood or simply having some morals he turned down the bulk of this money. He did however take the year's salary he was awarded on resignation. A salary, and benefits, in excess of £2ml!!
Most people will believe that salary for a year's work is not justified. Then there are the added bonus payments whether the bank is effective or a mess. But to take that after resigning due to the Libor scandal is a pure and utter disgrace.
At the inquiry into the wrong doing Marcus Agius said that Diamond had given up £20m worth of bonus payments when he resigned. He has voluntarily done this. Well whoop de doo. He should have been stripped of any such payments and directed to the nearest "dole office" as an ordinary employee would have been.
Barclays has been fined in the past for manipulating bank rates. It has often behaved in a devil may care manner. It is now majority owned by UK taxpayers and needs to begin to act appropriately. The £20 million bonus payments Diamond waived is a mere drop in the ocean compared to the fine Barclays had to pay.
Just leave the job Mr Diamond with your month's salry and no more. That is more than others would get, in every sense of that statement.
Tags: Libor manipulation, Barclays Bank, Bob Diamond, bank bonus payments, rate rigging, inquiry