New Years Honours: Alison Carnwath Made Dame After Fighting Bob Diamond's 'Obscene' Pay

Woman Honoured Who Fought Bob Diamond's 'Obscene' Pay
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Former Barclays chief executive Bob Diamond, leaves after giving evidence to the Treasury Select Committee at Portcullis House, central London.
Stefan Rousseau/PA Archive

A former Barclays director who fought against former chief executive Bob Diamond's "obscene" pay packet at the bank has been made a dame in the New Year Honours list.

Alison Carnwath had been at the centre of a furore over the chief executive's £18 million package when she quit as head of remuneration.

She later told the Parliamentary Commission on Banking Standards that Diamond was reluctant to accept that pay at the bank was too high and that the board ignored recommendations to withhold his bonus for 2011.

Dame Alison welcomed the honour "in an age when trust in big business is scarce".

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Dame Alison Carnwath

Her departure from Barclays in July last year, citing "personal reasons", followed the exit of Diamond, as well as chief operating officer Jerry del Missier, in the wake of the bank's £290 million fine over the Libor rate-rigging scandal.

Diamond received an £18 million package for the previous year including salary, benefits, long-term share awards and a near £2 million bonus - which was around 75% of the maximum payout.

In her evidence to the commission, Dame Alison said she was "amazed" at the planned payout, but said her recommendation fell on deaf ears.

She said her judgment had been that amid poor returns for shareholders, Diamond ought to set an example "that remuneration policies had to change".

Dame Alison added: "A culture of entitlement has emerged in banking for a variety of reasons.

"This has resulted in the fear of losing good people, obscene levels of award in a minority of cases and excessive reward in many cases."

Dame Alison, who spent 20 years working in investment banking and corporate finance, has been chairman of property company Land Securities since 2008.