* Carnwath said Diamond should not have got any bonus for2011
* Some "obscene" levels of pay awards -Carnwath
* Barclays demanded "too much patience" from shareholders
By Steve Slater and Matt Scuffham
LONDON, Jan 30 (Reuters) - The former head of remunerationat Barclays said she clashed with the British bank'sboard over former boss Bob Diamond's pay package and describedsome bonus awards in banking as "obscene".
Alison Carnwath, who quit in July at a time of turmoil forthe bank following its fine for rigging Libor interest rates,said Diamond had been reluctant to accept that pay at Barclayswas high and was "overly protective of his investment bankingfranchise".
Carnwath, who cited personal reasons for her departure, toldUK lawmakers on Wednesday she was "amazed" Diamond was beingoffered any bonus for 2011 because the bank's returns were weak.
"It was for this reason that I disagreed with the boardchairman's recommendation on Mr Diamond's annual bonus for 2011.I recommended zero.
"I was alone in my view both on the committee which Ichaired and on the board," she said in a written submissionprior to appearing before the UK Banking Inquiry.
Carnwath said Marcus Agius, then chairman, would be in abetter position to explain how the bonus award had been reached.
Diamond, who declined to respond to Carnwath's statements,was paid 6.3 million pounds ($9.95 million) for 2011, includinga deferred share bonus of 2.7 million pounds and a long-termincentive award of 2.25 million.
"OBSCENE LEVELS OF AWARD"
Investors have called for banks to cut pay in recent yearsto try to lift depressed returns, but Carnwath said Barclays wasslow to act and Diamond was reluctant to take a lead.
"Vocal shareholders were quite clear on the need to reducepay at Barclays and this message was communicated in nouncertain terms to the chairman, the company secretary, the HRpersonnel, myself and Mr Diamond."
Carnwath, a 20-year veteran of investment banking who joinedthe Barclays board in August 2010, said the remunerationcommittee knew pay was "at the top end of the scale" and askedDiamond to take a leadership position when he took over as CEOat the start of 2011, but he was reluctant to do so.
She added: "Barclays were demanding too much patience fromtheir shareholders and were insufficiently sensitive to thepolitical and economic environment and the hostile attitude tobanks generally."
Carnwath said "a culture of entitlement" had emerged inbanking that had "resulted in the fear of losing good people,obscene levels of award in a minority of cases and excessivereward in many cases for the investment banking community".
Diamond and Agius quit after the Libor scandal erupted inJune. Carnwath was criticised for allowing the final pay awardsto them, but she denied at the time there had been any tensionsbetween her and Agius despite reports of a clash.
John Sunderland, who replaced Carnwath as head of the paycommittee, told the inquiry he thought Diamond deserved a bonusfor 2011.
Andrew Tyrie, head of the inquiry, accused him of being"unrepentant" in a bad tempered exchange.
Sunderland said there had been closer consultation withshareholders on upcoming bonus awards at the bank.
Barclays (BARC)
