Barclays Bank has announced that CEO Jez Staley is to step down ahead of a regulatory report on his links to convicted sex offender Billionaire Jeffrey Epstein.
Jez Staley and Jeffrey Epstein
In a statement issued through the London Stock Exchange, the UK banking brand said: “Barclays and Mr Jes Staley, Group Chief Executive, were made aware on Friday evening of the preliminary conclusions from the FCA and the PRA of their investigation into Mr Staley’s characterisation to Barclays of his relationship with the late Mr Jeffrey Epstein and the subsequent description of that relationship in Barclays’ response to the FCA.”
The bank said that in view of those conclusions, and Staley’s intention to contest them, the Board and Staley have agreed that he will step down from his role as Group Chief Executive and as a director of Barclays.
The bank noted that the investigation makes no findings that Staley saw, or was aware of, any of Epstein’s alleged crimes, which it said was the central question underpinning Barclays’ support for Staley following the arrest of Epstein in the summer of 2019.
However, the bank went on to ay it was “disappointed at this outcome. Mr Staley has run the Barclays Group successfully since December 2015 with real commitment and skill.
“Supported by the senior team which he largely helped build and on whom the Barclays Group will be relying for the future, Mr Staley clarified the Barclays Group’s strategy, transformed its operations and materially improved its results.
“The regulatory process still has to run its full course and it is not appropriate for Barclays to comment further on the preliminary conclusions.
With effect from today,1 November 2021, Mr C.S. Venkatakrishnan (known as Venkat) will take over as Group Chief Executive, subject to regulatory approval, and as a director of Barclays.
The Board has had succession planning in hand for some time, including reviewing potential external appointees, and identified Venkat as its preferred candidate for this role over a year ago, as a result of which he moved from the position of Group Chief Risk Officer to Head of Global Markets.
Pay-off arrangements for Staley
According to Barclays’ Remuneration Committee, Staley is entitled to 12 months’ notice from Barclays under his contract of employment and will therefore continue to receive his current fixed pay (£2.4m per annum delivered in cash and Barclays shares), pension allowance (£120,000 per annum) and other benefits until 31 October 2022.
Salary arrangements for C.S. Venkatakrishnan
Venkat’s compensation arrangements will reflect his role and responsibilities and are made in accordance with the DRP.
On appointment, Venkat will receive fixed pay of £2.7m, delivered 50% in cash (paid monthly) and 50% delivered in Barclays shares.
The shares will be delivered quarterly and will be subject to a holding period with restrictions lifting over 5 years.
Venkat will also receive a cash payment in lieu of pension of £135,000 per annum.
Venkat will receive standard benefits including medical cover and life assurance.