Think bonus season was over? Think again....

The Association of British Insurers, who represent many powerful City investors, has today issued advice that has upped the pressure on Bob Diamond over his pay packet.

With Barclay's AGM at the end of the month, the ABI has become the latest shareholder organisation to question whether Mr Diamond should have been paid more than £6million this year, as well as a 'tax equalisation' payment - of £5.7million, which was paid to him to make up for changes to his tax status when he moved from the US to the UK.

Their decision to put Barclay's on 'amber alert' - which basically urges investors carefully to consider what the company is doing before they approve it at the AGM, is not totally unheard of. Yet it comes hard on the heels of two other groups, Pirc and ShareSoc who have both recommended rejecting the deal at the bank's annual meeting on Friday 27th.

With other investors like Fidelity and Aviva also reported to have concerns about how the bank decided pay packages, even Barclays, who consider themselves to be partially immune to the public criticism of the banks, may have to consider the pressure.

As we reported when the bank issued its results, the ABI was disappointed enough with the lack of action over bonuses to call it 'close to business as usual'.

Sources then suggested they would continue to negotiate with Barclay's behind the scenes to get the payments down. But it seems with the AGM approaching fast, that route has been exhausted. Until the government changes the law, which they have promised to do, shareholders can't legally vote down the pay package. But were a significant chunk to vote against, that would cause serious embarassment for the bank.

Barclay's is taking it seriously enough to issue a statement tonight, which perhaps opens the door a tiny crack to a change of heart.

They say: “Barclays takes its responsibility to engage all of its shareholders seriously. We have had extensive engagement with shareholders, including the ABI and its members over recent weeks. The ABI have produced a carefully considered report. We note the concerns and questions that they have raised in their report and look forward to continuing to work with them on those.”