Barclays prepares for showdown with Bob Diamond over £25m pay-off

The bank's board called a late meeting to review the terms of his contract and decide the bank's legal position in regard to Mr Diamond's £18m of unvested share options and £4m-plus of benefits. He is also due more than £2m in lieu of a year's salary and pension after being ejected from the bank on the direction of the Bank of England Governor over the Libor scandal. A source close to the board said: "Barclays needs to establish where it stands legally with regards to Bob's contract and entitlements. The bank is fully aware of the high emotions around this and the need for there not to be any false moves." The board is expected to discuss the terms of the internal third party review into the bank's culture, to be led by deputy chairman Sir Mike Rake, as well as possible claw-backs for others involved in interest rate rigging, which resulted in a £290m fine for Barclays. The board is under intense pressure to avoid paying off Mr Diamond, who has earned more than £100m since 2005 but has not offered to forfeit any of his leaving package. At the Treasury Select Committee (TSC) on Wednesday, he said it was a matter for the board.