'Maybe the time is right' for bonuses says analyst

Barclay's new boss Bob Diamond has been awarded a bonus of £6.5m for his work last year on top of his basic pay of £250,000.

The bonus consists of £1.8m in shares and £4.7m in a deferred incentive scheme. This award makes Bob Diamond the highest paid boss of a British bank.

He was not the top earner at the bank, as two unnamed executives below board level made in excess of £10m.

The former boss John Varley is thought to have received a bonus of about £2m, on top of his annual salary of £1.6m.

Chris Skinner is chairman of the financial services club and he told the BBC that ''maybe the time is right now that the banks are becoming stable to take a bonus''.