Barclays CEO gets bonus cut for trying to unmask whistleblower
Barclays has reprimanded Chief Executive Jes Staley and will cut his bonus for attempting to uncover a whistleblower’s identity, the British bank said on Monday.
In a statement, the bank disclosed that British authorities were also investigating Staley’s attempts to identify the author of a letter that revealed “concerns of a personal nature” about an unnamed senior employee.
The attempt by Staley, which a legal investigation ordered by the bank found involved a US law enforcement agency, was at odds with the company’s own policy. Barclays grants whistleblowers anonymity to prevent any retribution for their actions — in keeping with normal UK practice.
“I have apologized to the Barclays board, and accepted its conclusion that my personal actions in this matter were errors on my part,” said Staley, a former JPMorgan banker who took the helm at Barclays just 15 months ago.
The board, which said it accepted Staley’s explanation that he was trying to protect a colleague from what he believed to be an unfair attack, will back his reappointment at the annual shareholder meeting on May 10.
Nonetheless, the investigation by the Financial Conduct Authority and the Prudential Regulation Authority casts a cloud over the bank.
“I am personally very disappointed and apologetic that this situation has occurred, particularly as we strive to operate to the highest possible ethical standards,” Barclays Chairman John McFarlane said in the statement.
The investigation could take months to conclude, said one person familiar with the matter.
The probe into Staley’s conduct comes as the latest in a series of regulatory problems for the bank, which is still dealing with investigations into employees’ manipulation of the Libor benchmark interest rates.
“Given Barclays’ history of regulatory misdemeanors … this latest revelation represents a very significant embarrassment,” Gary Greenwood of Shore Capital wrote.
Barclays’ board first heard of Staley’s attempt to identify the author of the letter in early 2017, after the issue was raised by an employee, Barclays said.
“The investigation … found, and the board has concluded, that Mr Staley honestly, but mistakenly, believed that it was permissible to identify the author of the letter,” the bank said.
The attempts to uncover the whistleblower took place despite the bank’s appointment of a ‘whistleblower champion’ — Mike Ashley, the chairman of its Board Audit Committee.