DIAMOND PLEASER; Barclays boss Bob could reap pounds 4.7m from iShares sale.

BARCLAYS president Bob Diamond is in line for a pounds 4.7million payout after the bank sold part of their fund management business to bolster finances.

The pounds 3billion sale of the iShares operation will trigger windfalls for Diamond and a host of other directors with stakes in the firm.

Diamond has 300,000 shares and options in iShares owners Barclays Global Investors Holdings, and the payout will cushion the blow from Barclays' decision to scrap 2008 bonuses.

This left the Barclays president with a pounds 250,000 basic salary for last year - a fraction of the pounds 21.1million in pay and bonuses he enjoyed in 2007.

Bailout

Under the bank's share investment scheme, Diamond and more than 200 executives own 4.5 per cent of BGI through an arrangement approved by Barclays shareholders in 2000.

The bank, who have shunned Government bailout schemes in favour of their own fundraising, have sold their iShares business to private equity firm CVC.

Barclays chief executive John Varley said: "Shareholders will benefit from a reinforcement of our capital base and an ongoing commercial relationship with iShares." The sale of iShares boosts Barclays' equity tier one ratio - a key measure of their capital strength - to 7.2 per cent.

Investors welcomed the move as Barclays' shares soared 10 per cent after news of the sale.

iShares have around 620 employees in 14 countries. They are part of the BGI division and the world's biggest providers of exchange traded funds.

The division had pounds 226billion of assets under management at the end of last year.

Barclays did not participate in the Government's banking bailout last year and instead raised about pounds 7billion, mostly from Middle East investors.

CAPTION(S):

PRESIDENT: Diamond