Barclays CEO Jes Staley to Step Down After Epstein Investigation -- Update

By Sabela Ojea

Barclays PLC said Monday that Chief Executive Jes Staley has agreed to step down following an investigation into his relationship with the late financier and convicted sex offender Jeffrey Epstein.

The FTSE 100 listed bank said that Mr. Staley, who has been at the helm of Barclays since December 2015, intends to contest the conclusions made by the Financial Conduct Authority regarding his relationship with Mr. Epstein.

C.S. Venkatakrishnan, head of global markets of the bank, will take over as CEO with immediate effect, Barclays said. He will receive a fixed pay of 2.7 million pounds ($3.7 million) a year, delivered 50% in cash and 50% in Barclays shares.

The board identified Mr. Venkat as its preferred candidate for the role more than a year ago, as a result of which he moved from the position of group chief risk officer to head of global markets.

"It should be noted that the investigation makes no findings that Mr. Staley saw, or was aware of, any of Mr. Epstein's alleged crimes, which was the central question underpinning Barclays' support for Mr. Staley following the arrest of Mr. Epstein in the summer of 2019," the U.K. lender said.

Barclays said that, since Mr. Staley is entitled to a 12-month notice. He will continue receiving GBP2.4 million a year in fixed pay until Oct. 31, 2022. He will also continue receiving its GBP120,000 a year pension allowance and other benefits, it said.

"The FCA and PRA [Prudential Regulation Authority] do not comment on ongoing investigations or regulatory proceedings beyond confirming the regulatory actions as detailed in the firm's announcement," the U.K. regulator said.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

November 01, 2021 04:04 ET (08:04 GMT)

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