Barclays capital plan rejigged, pay bonuses axed

* No 2008 bonuses for executive directors

* Moves to quell shareholder revolt

* Barclays shares fall 6 pct, dilution of deal unchanged

(Adds comments from Sheikh Mansour, analysts; updates shares)

By Paul Hoskins and Steve Slater

LONDON (Reuters) - British bank Barclays (BARC.L) moved to head off a revolt by shareholders on Tuesday by offering them a slice of a 5.8 billion-pound ($8.7 billion) capital injection from Middle East investors and scrapping this year's executive bonuses.

Shareholders will be offered 500 million pounds of the 3 billion pounds of reserve capital instruments (RCIs) paying an annual interest rate of 14 percent that had previously been earmarked for investors in Qatar and Abu Dhabi.

Barclays said its entire board will also stand for re-election in April, confirming a Reuters report on Monday.

The move comes after some investors had said the terms of the capital issue were too generous to the Middle East investors and analysts said it should improve the prospect of the issue being approved at a Nov. 24 extraordinary shareholders' meeting.

But the Middle East investors keep share warrants attached to the RCIs and commission, so it does not change much and shareholder dilution will remain the same, analysts said.

"This represents a small, albeit non-equity, olive branch to existing institutional investors," said James Hutson, analyst at Keefe, Bruyette & Woods.

Barclays shares were down 6 percent at 145.1 pence at 1230 GMT, when the DJ Stoxx European banking sector index .SX7P was down 5 percent.

BONUSES AXED

Britain's second biggest bank said the move followed meetings between executives and investors in recent days.

Qatar's sovereign wealth fund and Sheikh Mansour Bin Zayed Al Nahyan, a brother of Abu Dhabi's ruler, will each make up to 250 million pounds of RCIs available to existing shareholders in a bookbuilding process on Tuesday, the bank said.

"This is an act of good faith," Ali Jassim, advisor to Sheikh Mansour, said in a statement to Reuters.