Published: Sat, May 12, 2018
Finance | By Claude Patterson

Barclays chief fined over whistleblowing scandal but bank escapes sanctions

Barclays chief fined over whistleblowing scandal but bank escapes sanctions

"In addition, Barclays is now subject to special requirements to report to the PRA and FCA how it handles its whistleblowing cases in the coming years", Woods explained. The scandal will cost him a total of £1.1 million after the blue-chip group chose to trim his compensation.

Named after the Caribbean island where he honeymooned with Debora, his Brazilian wife who is an interior designer and heiress, the vessel offers an insight into the moneyed world of the Barclays chief executive. They expressed concerns about its existing systems.

He earned a further £3.9m a year ago.

"This was an opportunity for United Kingdom regulators to say they will protect whistleblowers, and they blew it", Erika Kelton, a partner and whistleblowing attorney at Phillips and Cohen, told the newspaper.

Accordingly, paying these fines is hardly going to leave him going to a food bank for his next meal.

Accordingly, the board has now confirmed its decision of April 2017 and has made a very significant adjustment to Jes's variable compensation on the recommendation of the Board Remuneration Committee.

Leave aside the fine, though.

"Mr. Staley breached the standard of care required and expected of a chief executive in a way that risked undermining confidence in Barclays' whistleblowing procedures", said Mark Steward, the FCA executive director.

It is not the first time a major financial services CEO has been punished in this way - Tidjane Thiam, the former CEO of the Prudential, was similarly castigated in 2013 for failing to keep the FCA properly appraised of a potential takeover - but it is the first time that a sitting chief executive of one of the UK's major banks has been.

Barclays' (LON:BARC) chief executive Jes Staley has been fined by regulators over his attempt to uncover a whistleblower, the FTSE 100 lender has disclosed.

One other interesting point in the final notice from the regulators is worth dwelling on.

Instead, when he received anonymous allegations against a senior member of staff, who was also a friend, he set the bank's own internal investigations unit to work to discover the identity of the whistleblower.

"Before this case, Barclays" whistleblowing policy applied only to employees.

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