Matt Barrett, chief executive of Barclays, has been awarded a new contract which will pay him nearly £1 million a year more.

As well as a 40 per cent rise, as part of his new deal Barrett has been granted an option on between 500,000 and 1.98 million shares. The new agreement gives him an option to buy the shares at 2,082p each in three years' time.

The news from Barclays comes as the Office for National Statistics revealed that wages went up by an average of 2.7 per cent in the last 12 months.

Forum Response: Barclays

A spokesperson for Barclays told ePolitix.com: "We have to strike a balance between what he might be paid here and what he might receive in remuneration elsewhere, particularly in the US. We have negotiated a package with him which we think fits our requirements and we are pleased he has been able to sign that.

"Matt's impact on this business has been immense and we look forward to his continuing work to transform Barclays into one of the world's most admired financial services companies. We are very happy that he has re-signed his contract."

Forum Response: Unifi

A spokesperson for Unifi told ePolitix.com: "Our members find it difficult to understand and accept these figures."

Forum Response: Association of British Insurers

A spokesperson for the Association of British Insurers told ePolitix.com: "The share option scheme does seem on the generous side. We will be having a much closer look."