Barclays's

With the bank's revenues seemingly stuck in a rut, Mr. Diamond, who made his name by building Barclays's investment bank from the ground up, now finds himself in the unfamiliar position of needing to shrink his company, or at least big parts of it.

Barclays Sees Profit Jump 36% David Enrich 2011

But the strong results, which propelled Barclays's shares up 5.8%, belied the uphill climb facing the bank and its new chief executive, Robert Diamond , as they try to slim down and boost returns.

Barclays Sees Profit Jump 36% David Enrich 2011

The pay package disclosed Monday was based on Mr. Diamond's job running Barclays's investment-banking arm.

Barclays Chief Is U.K.'s Best-Paid Banking Boss David Enrich 2011

Its total income jumped 17% to £ 13.6 billion, but the increase stemmed entirely from the absence of 2009's £ 4.4 billion loss on risky credit assets and a £ 1.8 billion accounting loss tied to the value of Barclays's debt.

Barclays Sees Profit Jump 36% David Enrich 2011

But new regulations mean that the loan will become one of the most capital-intensive assets on Barclays's balance sheet, according to Mr. Lucas.

Barclays Sees Profit Jump 36% David Enrich 2011

Mr. Diamond, a Massachusetts native who helped build Barclays's investment bank into a global powerhouse, has been a controversial figure in London due to his hefty paydays.

Barclays Chief Is U.K.'s Best-Paid Banking Boss David Enrich 2011

On Monday, they said Barclays's board reduced the amount to £6.5 million after Mr. Diamond urged directors to take into account the current political environment, including a recent industry agreement with the British government to rein in compensation.

Barclays Chief Is U.K.'s Best-Paid Banking Boss David Enrich 2011

Barclays's Mr. Young says part of the euro's resiliency reflects investor confidence that European officials have made progress in dealing with the crisis, even if much remains uncertain.

Euro Defies Skeptics; Yen Draws Intervention Tom Lauricella 2011

Mr. Diamond, who became CEO at the start of the year, also received a package of shares that, depending on Barclays's financial performance over the next three years, could be worth a maximum of £6.75 million.

Barclays Chief Is U.K.'s Best-Paid Banking Boss David Enrich 2011

Mr. Diamond is betting that a key to resuscitating Barclays's returns lies in a massive cleanup project.

Barclays Sees Profit Jump 36% David Enrich 2011