Rate-fixing is an absolute no-no in the banking profession, or indeed any profession – so when it was recently revealed that the Libor interest rate at which banks lend to another was fixed – Barclays was fined £290 million by UK and US regulators for manipulating the rate. Since then the bank has suffered a huge blow to it’s reputation, with big cheeses resigning left right and centre in a bid to claw back some reputation.
As a result of the scandal, former chief executive Bob Diamond handed in his resignation and Barclay’s have appointed a new chief executive, Anthony Jenkins, to try and put right some of the banks mistakes.
Jenkins was previously in charge of Barclays Retail and Business banking and has been a member of the executive committee since back in 2009. Just one day after the news came that Barclays was to be investigated by the Serious Fraud Office, Jenkins was announced as the new chief executive – beginning his transition into the role by admitting that some serious mistakes had undoubtedly been made.
Barclays current chairman Marcus Agius said that Mr Jenkins was selected as a result of his excellent track record of transforming Barclaycard and Retail and Business Banking.
Mr Agius remains chairman only for a short while longer, after handing in his resignation post Libor scandal but agreeing to stay on until a new suitable chief executive was found. He is soon to be replaced by Sir David Walker.
Mr Jenkins will begin his new role on a basic starting salary of £1.1m, with bonus potential of up to 250% and a possible long-term incentive bonus worth a maximum of 400% of his salary.
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