Barclays has agreed a resignation package with ex-chief executive Bob Diamond where he will forfeit up to 20 million pounds ($31 million) in bonuses and incentives but receive a year's salary, pension and other benefits worth 2 million pounds.
Diamond resigned last week after Barclays was fined $453 million by U.S. and U.K. agencies for making false reports of its borrowing costs between 2005 and 2009.
Barclays said Tuesday that Diamond had agreed that all of his unvested deferred bonus awards and long-term incentives would lapse, that he would not receive any future bonus or incentive awards or compensation for the termination of his employment.
The bank's outgoing chairman, Marcus Agius, in his testimony to the House of Commons Treasury Committee, said Diamond had waived a potential 20 million pounds ($31 million) in bonuses and share awards. Agius added that as part of the resignation deal, Diamond will receive 12 months' salary and pension contributions worth 2 million pounds.
"It is my hope that my decision to step down and agreement on my remuneration will help close this chapter and allow Barclays to move forward and prosper," Diamond said, according to the bank's announcement.
The agreement is "something that the board of Barclays welcomes and I am glad that he has done it," Agius told the committee.
Agius has announced his intention to step down as soon as his successor is in place. Meanwhile, he is serving as executive chairman and is leading the search for a new chief executive.
Agius announced his resignation on Monday, July 2, hoping to ease pressure on the bank.