Sure did.
Thanks to all who tweeted it and so brought it to my attention
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And one hopes that they are not looking to take us for another ride on Diamond’s payoff.
The extract below taken from the FSA’s remuneration code makes it pretty clear that Diamond’s deferred compensation should be reduced when Barclays suffers a material failure of risk management. Given that the FSA has concluded such a failure has occurred — one would hope that they are pushing for a reduction in Diamond’s settlement package (to Nil would be a pretty good starting position imho), and are ready to take action against Barclays if they decide to ignore the Remuneration Code.
SYSC 19A.3.51 01/01/2011
A firm must ensure that any variable remuneration, including a deferred portion, is paid or vests only if it is sustainable according to the financial situation of the firm as a whole, and justified according to the performance of the firm, the business unit and the individual concerned.
[Note: Paragraph 23(q) of Annex V to the Banking Consolidation Directive and Standards 6 and 9 of the FSB Compensation Standards]
SYSC 19A.3.52 01/01/2011
(1) A firm should reduce unvested deferred variable remuneration when, as a minimum:
(a) there is reasonable evidence of employee misbehaviour or material error; or
(b) the firm or the relevant business unit suffers a material downturn in its financial performance; or
(c) the firm or the relevant business unit suffers a material failure of risk management.
(2) For performance adjustment purposes, awards of deferred variable remuneration made in shares or other non-cash instruments should provide the ability for the firm to reduce the number of shares or other non-cash instruments.
(3) Contravention of (1) or (2) may be relied on as tending to establish contravention of the rule on performance adjustment (SYSC 19A.3.51 R).