Barclays CEO Jes Staley Fined but Keeps Job -- Update
April 20 2018 - 3:31AM
Dow Jones News
By Max Colchester
Barclays PLC Chief Executive Jes Staley will keep his job after
British regulators concluded his attempts to unmask a whistleblower
didn't represent a "lack of integrity" but they did order him to
pay a fine.
The bank said its board had "unanimous confidence" in Mr. Staley
and that regulators "are not alleging that he acted with a lack of
integrity or that he lacks fitness and propriety to continue to
perform his role."
Barclays said it couldn't comment further on the outcome of the
probe because Mr. Staley still has the right to challenge the fine.
It didn't say how much he was asked to pay.
The decision to back Mr. Staley ends a year of instability for
the U.S. executive and draws a line under a major unknown that has
weighed on Barclays. Last year the bank flagged Mr. Staley's
attempts to reveal the identity of a whistleblower who criticized a
hire he made to British regulators and a probe ensued. The
whistleblower's identity was never revealed.
Mr. Staley has since apologized for his actions and the bank's
board backed the embattled chief executive. At the bank's annual
general meeting last year, Chairman John McFarlane said Mr. Staley
had "gone through a red light" and "when you go through a red light
you don't lose your license." Barclays has said it will dock part
of Mr. Staley's pay.
The probe is also being closely watched as the first major test
of new U.K. regulations. In 2016, U.K. regulators instituted the
"Senior Managers Regime," a set of rules aimed at ensuring bank
executives are held responsible for their actions. Around the same
time it upgraded rules aimed to protect whistleblowers. They
require big U.K. banks to appoint a "whistleblowing champion" among
their senior managers and for a report on whistleblowing to be
presented to the board every year.
Barclays said a separate probe into the bank's whistleblowing
practices hasn't resulted in enforcement.
Write to Max Colchester at max.colchester@wsj.com
(END) Dow Jones Newswires
April 20, 2018 03:16 ET (07:16 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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