Barclays to pay new chief Staley over £8m a year
British bank Barclays has appointed James "Jes" Staley chief executive and said the former JPMorgan investment bank boss will be paid up to £8.24m (€11.3m) a year.
Staley will take the Barclays helm at the start of December. He had been widely expected to be appointed after sources and other media reports this month said he had been chosen and just needed regulatory approval.
Barclays Chairman John McFarlane said on Wednesday Staley had the appropriate leadership talent and wide-ranging experience to deliver shareholder value and take the bank forward.
"In particular, he understands corporate and investment banking well, the re-positioning of which is one of our major priorities," McFarlane said.
Barclays said Staley's annual pay will consist of a salary of 1.2 million pounds, a role-based "allowance" of 1.15 million pounds in shares, a cash allowance of up to 400,000 pounds and up to 5.5 million pounds in annual bonus.
He will be granted about 1.9 million pounds of Barclays shares to compensate him for an unvested share award granted to him by JPMorgan, which is forfeited when he starts at Barclays. He will also receive standard benefits including medical cover, life assurance and relocation costs.
Boston, Massachusetts-born Staley, 58, is currently managing partner of U.S. hedge fund firm BlueMountain Capital management.
The keen yachtsman previously ran JPMorgan's investment bank and asset management business and had been at the bank for 34 years before leaving in early 2013 to join BlueMountain. He made the shortlist when Barclays last looked for a CEO three years ago.
Previous Barclays CEO Antony Jenkins was fired in July after losing the support of non-executive directors in a clash over style and the pace of the bank's turnaround.
Staley will face a number of challenges at Barclays. The bank is just over halfway through a three-year plan to cut 19,000 jobs, including 7,000 in the investment bank, still faces litigation issues and is trying to improve returns.
Investors and analysts have said Staley should improve morale and set a clear strategy for the investment bank after years of uncertainty, but they warned he should not build it back up aggressively.
McFarlane, who has been running the bank since Jenkins' exit, said he knew Staley well and the pair were in agreement on the way forward, in particular the need to accelerate the delivery of improved shareholder returns.
Staley understood the business and "also the importance of cultural reform and the need to conduct our business in a way that we can all be proud of," McFarlane said.
Staley said in a statement: "Maximizing the potential of this franchise means building on our competitive advantages and developing new ones in order to generate strong returns on capital.
"If we do this, increased value for our shareholders will follow at the same time as Barclays' long history of leadership is continued and enhanced."