Barclays’ Shareholders Demand Financial World Equivalent Of Violent Bloody Retribution

Barclays’ shareholders still haven’t got used to the idea that their shares have been diluted to the tune of £7bn, thanks to the bank heading to the Middle East to get a capital injection that means they won’t have that pesky Alastair Darling taking an interest, and can carry on paying bosses whatever they like. While oil sheiks and male-journo fantasy figure Amanda Staveley did rather well out of the deal, you’ve got angry stakeholders like Legal & General and Aviva saying the financing shouldn’t have gone ahead; the latest to join the anti-sheik brigade is pensions and investment research consultants Pirc.

So a rather rattled Barclays is taking two pretty bold steps to placate the baying, besuited mob. First up it’s holding a meeting on the 24th at which shareholders can approve the fundraising, or not. Although many will be put off voting against the move because of the £300m in fees that have to be payed anyway, if Pirc et al manage to stimulate more ill-feeling, Barclays could be in real danger of a shareholder revolt.

Secondly, it’s been announced this morning that to calm the anger at Sheikh Mansour and friends getting a better rate of interest on their investment than institutional shareholders, the deal has been modified to mean that the two major new investors will each have to make £250m of capital available to institutional investors to buy – this capital is the juicy stuff that have a fixed 10-year life and 14% return.

But hell hath no fury like a shareholder scorned, so to further sate the bloodlust Barclays have decided to put up its whole board for re-election next year, rather than choosing to re-elect each director every three years. The bank has also joined Goldman Sachs in announcing that there will be no bonuses for directors this year.

I wonder though who’s going to have the brass balls to announce that yes, we know that the public part-own us now, and yes, the silly bonuses are crass and offensive as jobs start to tumble, but you know what? It’s been a tough year, we’re really stressed out and we want our turkey stuffed with cash this year (and then pay themselves the usual eye-watering sums). My chocolate money is on JPMorgan…

Posted by Ben Beaumont-Thomas in Hot Money | November 18, 2008 10:59AM |