Barclays chief: Large bankers' bonuses 'rewards for success' — Then why do they get them when they fail?

Barclays chief executive Bob Diamond says he expects levels of compensation across the banking sector to be down this year, but has defended large bonuses as "pay for performance."

Speaking to CNN anchor and correspondent Richard Quest at the World Economic Forum in Davos, Diamond addressed the criticism leveled at the banking sector for its high salaries and bonuses during a time of austerity and bailouts.

"I think getting some of the emotion out of this is healthy," said Diamond. "It's about pay for performance. I hear a lot of people talk about the eradication of pay for failure -- we support that. No-one wants to see pay for failure.

"But every time I hear a political leader mention the eradication of pay for failure, I'd like to also hear them talk about rewards for success." Read More