The guy who openly admitted he was getting notification from the BOE to manipulate Libor, and was advising his traders appropriately, Barclays' COO Jerry del Missier, and who quit the same day as his boss Bob Diamond, has finally had his pay package revealed. The payoff to get him out and shut him up? £8,750,000.
I can exclusively reveal that Jerry del Missier, who resigned as Barclays’ chief operating officer earlier this month, negotiated a severance deal worth at least £8.75m in the days before he quit, according to people close to the bank.
I’m told that the £8.75m figure represents just over half of a £17m potential long-term incentive award made to Mr del Missier some years ago, and which matured in March. City sources say he was asked by senior colleagues to defer receipt of the award in the spring because Barclays executives intimated that it was an inappropriate climate for such a lavish bonus to be paid out.
Insiders say that Mr del Missier verbally agreed the outline of his payoff with Marcus Agius, the outgoing chairman of Barclays, in the days before the former’s departure was announced on July 3. The cash element of the deal was settled upon in an attempt to secure Mr del Missier’s signature on a severance agreement, one source said.
The bank is understood to have felt that there was no legal basis for forcing Mr del Missier to forego the cash payout once he resigned because he was entitled to have taken receipt of it in March.
What is less clear is the fate of share options held by Mr del Missier that could be valued at tens of millions of pounds. A large chunk of these options – which analysts estimate could be worth up to £40m – were subject to clawback provisions contained in his contract and I expect that he will not be able to cash in many, if any, of them in addition to the £8.75m cash payoff.
By deciding not to waive the £8.75m award, Mr del Missier risks becoming the latest lightning rod for public anger over bankers’ pay. And the news that the Canadian former head of Barclays’ investment banking arm could receive such a gargantuan golden goodbye threatens to plunge the bank deeper into chaos just 36 hours before it reports its financial results for the first half of 2012.
Because there is nothing like engaging and being caught in criminal activity to be rewarded with a nearly $15 million golden parachute.
And then they wonder why bankers are just loved by the people. So much so in fact, that the SBA is drowned in applications from small businesses specializing in portable guillotines.