Bob Diamond will forego almost £20m in bonuses and shares, the chairman of Barclays has revealed.
Giving evidence to Parliament yesterday, Marcus Agius, the Barclays chairman, said Mr Diamond would be paid up to a year's salary and pension contributions worth "around" £2m, despite being entitled to only six months' worth.
Mr Diamond, said he hoped the agreement "will help close this chapter and allow Barclays to move forward and prosper" after the bank was fined £290m for attempting to fix the interbank borrowing rate Libor.
But that looked unlikely after more revelations at the Treasury Select Committee.
It emerged Mr Diamond appears to have misled the committee on at least two occasions giving evidence last week.
And regulators had serious concerns about the governance of Barclays as recently as April.
Also Mr Diamond only left Barclays after the Governor of the Bank of England told Mr Agius that the regulators had lost confidence in the chief executive.
Questioning Mr Agius, John Mann said: "Mr Diamond has been misleading this committee, hasn't he?"
Mr Agius denied this but admitted that the relationship with the FSA had been strained.