Barclays unveils bonuses overhaul; IN ASSOCIATION WITH Rensburg Sheppards.

BARCLAYS pledged a new era of "pay for performance" yesterday as part of an overhaul of salary and bonuses after last year's plunging annual profits and multibillion-pound writedowns.

In its annual report, the banking giant unveiled further details on its remuneration review, which has already seen it announce a 48% plunge in total group bonuses for 2008, as well as a pay freeze and zero bonus pay-out for top bosses.

Chief executive John Varley saw his total pay plunge from pounds 4.2m in 2007 to pounds 1.08m, according to the report.

And president Bob Diamond, who heads up its hard-hit investment banking arm, picked up pounds 250,000 - a fraction of the mammoth pounds 21.1m in pay and bonuses he enjoyed in 2007.

But the report revealed that Mr Diamond also picked up a pounds 7.4m cash bonus last March and will receive another pounds 7.4m this year in shares relating to performance between 2005 and 2007.

Barclays said neither Mr Varley nor Mr Diamond will receive any long-term performance incentive awards for 2009, while all executive directors have agreed to defer for two years any pay-outs under previous schemes that were due to mature this year.