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Barclays Investors Target Execs' Awards

(c) Sky News 2012

Senior Barclays executives are to come under intense pressure from shareholders to forego millions of pounds in long-term incentive awards following the Libor-rigging crisis at the bank.

I have learned that leading investors in the bank will tell the board that Chris Lucas, finance director, and Rich Ricci, head of Barclays (LSE: BARC.L - news) ' investment banking arm, should not be considered eligible for any discretionary payments for 2012.

The request will follow the turmoil of the last week, during which (as if you needed reminding) Barclays was fined £290m for attempting to manipulate the interbank lending rate, triggering the resignations of Bob Diamond, chief executive, and Jerry del Missier, chief operating officer.

Marcus Agius, the chairman, also resigned, although he will remain at the bank until Mr Diamond's successor is appointed.

One big shareholder to whom I have spoken wants Barclays to make a public statement in the coming days to confirm that neither Mr Lucas nor Mr Ricci will be eligible for awards under the bank’s long-term incentive plan.

"It would be a step in the right direction," the investor said. "Last week's gesture (to waive their 2012 annual bonuses) doesn't go nearly far enough given the extent to which shareholders are suffering."

Board members are likely to be sympathetic to that demand. As I disclosed on Tuesday, directors are to ask Mr Diamond to relinquish the right to cash in as much as £18m in unvested share options that he was awarded in previous years.

Mr Diamond gave evidence to the Treasury Select Committee on Wednesday afternoon and was quizzed about his willingness to forfeit those bonuses as well as about his discussions with the Bank of England and Financial Services Authority over Barclays' involvement in the Libor-rigging scandal.

The Bank of England has snubbed a request from MPs (BSE: MPSLTD.BO - news) to disclose information about a discussion between Paul Tucker, the deputy governor, and Mr Diamond in October 2008 ahead of Wednesday's hearing, although Mr Tucker has requested the opportunity to appear as soon as possible to give his version of events.