Antony Jenkins has been ousted as the boss of Barclays PLC (LON:BARC) three years after he was promoted to the job in the wake of the Libor scandal, according to a report today by various mainstream news sources.
The bank said he was being temporarily replaced by the new chairman, John McFarlane, who has only been in post since April, to clear the way for new leadership to accelerate changes at the business.
Mr. Jenkins began his career in finance at Barclays in 1983, but subsequently moved to Citigroup and rose to head the company’s branded credit card business. In 2006, he returned to Barclays to take over the company’s Barclaycard division. In 2009, Jenkins was promoted to chief executive of the retail and business banking group and asked to join the executive committee.
Mr. Jenkins was appointed as the group chief executive of Barclays on 30 August 2012. In February 2014, he announced that he would be declining his bonus for 2013 following a series of scandals, and today it was announced that he would leave his position at Barclays after a dispute with the Board. Barclays deputy chairman Sir Michael Rake said a “new set of skills” was required at the head of the group.
Sir Mike Rake, the most senior independent director at Barclays, today stated with regard to Mr. Jenkins’ departure: “I reflected long and hard on the issue of group leadership and discussed this with each of the non-executive directors. Notwithstanding Antony’s significant achievements, it became clear to all of us that a new set of skills were required for the period ahead. This does not take away from our appreciation of Antony’s contribution at a critical time for the company.”
Mr. Jenkins has been attempting to restore the bank’s reputation in the wake of the Libor crisis and cutting back the investment banking operations that had been the cause of many of the scandals surrounding Libor rigging and pay. He was lambasted for explaining that bonuses had to be increased in 2013 when profits had fallen to avoid a “death spiral” of staff leaving.
The change takes place from 17 July when McFarlane will leave the board of First Group. His promotion to the top job mirrors the role he took on at insurer Avivia during the 2012 shareholder spring when the insurer’s boss was also ousted.
McFarlane said: “Whilst it is unfortunate that I have had little time to work with Antony, I respect and endorse the position of the board in deciding that a change in leadership is required at this time. I would add my personal thanks for everything that Antony has done for us. He can be proud of his heritage, especially his excellent work on culture and values that we will continue. I wish him well.
“Arriving at Barclays with a fresh perspective, it is evident that we have a standout brand with first-class retail, commercial and investment banking businesses. Nevertheless, we are leaving value on the table and a new approach is required. As a group, if we aspire to bring shareholder returns forward, we need to be much more focused on what is attractive, what we are good at, and where we are good at it.”