News

Barclays announces new CEO amid ongoing investigations

Following news on Wednesday that the U.K.’s Serious Fraud Office had initiated an investigation into payments between Barclays and Middle East investors during the financial crisis, Barclays named Antony Jenkins as its new CEO.

Jenkins, previously the head of retail and business banking at Barclays, will assume the position of CEO at a time when the bank remains under public scrutiny for its participation in the recent scandal involving manipulation of the London interbank offered rate — commonly known as Libor — a key interest rate used to price trillions of dollars of financial products, Yahoo reports.

Barclays raised $18.2 billion from investors in 2008, which allowed the bank to avoid a state bailout. The SFO is looking into payments made between the bank and Qatar Holding, a division of the Qatar Investment Authority, a sovereign wealth fund. Barclays said that the fund made a $7.1 billion investment.

Barclays admitted to the Federal Reserve in 2008 that it was submitting artificially low rates as part of an attempt to manipulate Libor. The bank agreed to pay out $453 million in a settlement with U.S. and British authorities for its participation in the scandal.

Additionally, Barclays has released information related to how Jenkins will be compensated as the new CEO. The total compensation package is a 25 percent reduction from that allotted to former Barclays CEO Bob Diamond. Beginning August 30, Jenkins’s annual salary will be $1.7 million and his bonus will amount to a maximum of 250 percent of his yearly salary.

“I am very proud to have been asked to lead Barclays, where I began my career nearly 30 years ago,” Jenkins said, according to Yahoo. “Barclays is a strong universal bank, with many assets, including market leading businesses; talented and engaged staff; and long-standing clients and customers. But, we have made serious mistakes in recent years and clearly failed to keep pace with our stakeholders’ expectations. We have an obligation to all of those stakeholders—customers, clients, shareholders, colleagues and broader society—and a unique opportunity to restore Barclays’ reputation by making it the ‘go to’ bank in all of our chosen markets. That journey will take time, we have much to do and I look forward to getting started immediately.”

Comments are closed.