Barclays appoints new chief executive as SFO investigation begins

Barclays has appointed Antony Jenkins as chief executive moments after the bank announced an investigation being led by the Serious Fraud Office (SFO).

The appointment of Jenkins follows the resignation of former chief executive Bob Diamond as a result of the Libor interest rate-fixing scandal.

Barclays said the SFO was investigating payments between the bank and Qatar Holding LLC, part of the sovereign wealth fund Qatar Investment Authority.

The inquiry relates to events in 2008, when Barclays was raising money from Middle East investors during the banking crisis.

In a statement, Jenkins said he was “very proud to have been asked to lead Barclays”, where he began his career almost 30 years ago.

Jenkins takes over at a difficult time for the bank, which has gained a bad reputation in light of the Libor rate-fixing scandal, which came to shore this summer.

In June, Barclays was fined £290 million by UK and US regulators for manipulating Libor, an interbank lending rate which affects mortgages and loans.

Jenkins told the Guardian: “Many things will have to change at Barclays, including compensation, across the group.” He also pointed out that he will start on a basic salary of £1.1 million, which is below the median for FTSE 100 chief executives.

He will also be receiving a potential annual bonus worth up to 250% of his salary subject to performance. On top of this, Jenkins is also eligible for a long-term incentive bonus worth up to 400% of his £1.1 million salary.

Barclays chairman Marcus Agius said Jenkins was chosen “because of his excellent track record transforming Barclaycard and Retail and Business Banking”.

Agius resigned as chairman following the Libor scandal, but decided to stay on until a new chief executive was found. He will now be replaced by Sir David Walker. 

Other resignations by members include Jerry del Missier, the bank’s chief operating officer.

 

Zanib Asghar