Barclays' new chief lands £2m pay deal

John Varley, the chief executive of Barclays, saw his pay more than double last year, from £905,000 to £2.07m, even though he assumed the role in September.

John Varley, the chief executive of Barclays, saw his pay more than double last year, from £905,000 to £2.07m, even though he assumed the role in September.

Having become deputy to Matt Barrett, the former chief executive, Mr Varley took over from him just months later. Mr Barrett, 60, became chairman and received a modest cut in his total pay package from £3.09m to £2.8m. That included an annual cash bonus of £1.65m, while Mr Varley received a £1.3m bonus in a year when Barclays' profits surged 20 per cent to a record £4.6bn. The bank's shares rose 19 per cent last year, the best-performing stock on the FTSE 350 Banks index, which gained 6.8 per cent.

On top of their pay packets, Mr Barrett received £715,000 in deferred shares that have to be held for three years, while Mr Varley got £569,000.

After last year's management shake-up, Barclays' other four executive directors also earned more than £1m.

Mr Barrett's move to the chairmanship led to his basic salary being cut to £650,000 this year, from £1.1m where his salary had been stuck since 2002. He is not a member of Barclays' group pension scheme but had received £990,000 a year to put into his own plan.

As chairman he will not get pension benefits, a cash bonus or share options. Mr Varley, 48, is in the company pension scheme and saw a £2.5m increase in the transfer value of his pension pot to £4.7m last year. That would entitle him to an annual pension of £307,000. He has been at Barclays for 22 years.

Mr Varley'spay dealcompares with £3.65m paid to John Bond, the chairman of HSBC, and the £2.5m earned by Fred Goodwin, the chief executive of Royal Bank of Scotland.