Bank CE braces for storm over $27m pay deal

(Observer):Bob Diamond is braced for a row over his potential £27m pay deal as he is confronted by shareholders for the first time since being promoted to chief executive of Barclays in January. A trading update before the annual meeting, Wednesday will also be scrutinised for progress on extricating the bank from Protium, a complex Cayman Islands-based deal to help Barclays avoid being dragged down by its most toxic loans. In February the bank stunned observers by taking a £532m hit on Protium and analysts at Investec believe it "may be a source of impairment charges". Diamond, who took the helm after 14 years running the investment banking arm, Barclays Capital, has concluded 35% of the bank’s operations are failing to achieve his target for a 13% return on equity.

He is already pulling the plug on Indonesia, retail banking in Russia and uniting the bank’s African business under a "One Africa" banner.

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