Two investment banking chiefs at Barclays are to leave the bank this summer as new chief executive Antony Jenkins continues his clearout from the Bob Diamond era.
The head of the investment bank, Rich Ricci, will end his 19 year affiliation with the bank this summer, Barclays revealed in a statement.
He will be replaced by Eric Bommensath and Tom King, who will become co-chief executives in addition to their current headships.
Tom Kalaris, the head of the wealth management business, will also leave at the end of June, to be replaced by Peter Horrell.
The shake-up, an undeniable milestone in Antony Jenkins’ revolution at the bank, sees the promotion of Skip McGee, who will lead Barclays’ operations in the Americas.
Bonuses
The two lieutenants of Bob Diamond’s maligned tenure at the bank both profited heavily from cashing in share reward options last month.
The appropriately named Ricci cashed in almost £18 million in deferred shares, while Kalaris also picked up a windfall of over £5 million.
The bank confirmed that both men would receive a year’s salary unless new employment is found elsewhere in the meantime.
Jenkins, who replaced Diamond last year, offered his gratitude to Ricci for his "major contribution to Barclays", but did not evade a glance at the vulgar rewards pocketed by the retiring chief.
"We’re not hurting for Ricci", he added. "All that bonus money should help cushion the blow a little bit.
"In Tom and Eric we have two superb leaders for CIB", he continued.
"I am looking forward to working with them to build the ‘Go-To’ investment bank from our already world-leading position."
"We're not hurting for Ricci" - Barclays' chief executive Antony Jenkins continues his clearout from the Bob Diamond era.
Culture Shock
Jenkins, who has waxed lyrical in recent months about the importance of cleaning up the beleaguered bank, spoke of the reshuffle as "the next step in that journey" to find the "right senior team."
He has commissioned several investigations into the bank’s culture since his appointment.
The first of these, produced by consultancy firm Genesis Ventures, was sensationally intercepted and suppressed by Andrew Tinney, a £5 million-a-year senior executive at Barclays Wealth (read more).
The damning report uncovered the relentless pursuit of "revenue at all costs" and a culture of intimidation and fear across Barclays Wealth under the leadership of Kalaris.
Tinney promptly resigned after his deception was uncovered.
Jenkins and the bank's chairman, Sir David Walker (right) were grilled by the Banking Standards Committee in February.
A more recent report furthering these claims has been submitted to UK and US regulators, demonstrating the bank's complicity in its own recrimination (read more).
Investec analyst Ian Gordon said that the departures of Ricci and Kalaris were "inevitable" and that a "material changing of the guard" was expected by the City.
He described the replacement co-chiefs as "very good, capable people" without the external visibility and flamboyance exuded by the erstwhile chief executive and his top henchmen.
And so Antony Jenkins' banking revolution at Barclays continues, albeit with the spotlight now uncomfortably upon the vast sums acquired by its ousted chiefs in the months before their retirement.
Keith McDonald
Which4U Editor
If you enjoyed this article:
- Check out the latest articles on our Finance Blog.
- Sign up for our free e-newsletter.
- Follow us on Twitter for regular updates.
{loadmodule php,TwitterButton}