Shares in Barclays (LON:BARC) have climbed into positive territory after it emerged that its chief executive Jes Staley will face a fine over his attempts to uncover a whistleblower, but would get to keep his job. The size of the fine is yet to be disclosed.
As of 09:21 BST, Barclays’ share price had added 0.47 percent to 215.05p, marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.36 percent higher at 7,355.13 points. The group’s shares have added more than three percent to their value over the past year, largely in line with the Footsie.
Jes Staley faces fine
Barclays announced in a statement this morning that the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) had concluded their respective investigations into Jes Staley’s attempts to uncover a whistleblower. The FCA and PRA are alleging that his actions represented a breach of a requirement “to act with due skill, care and diligence,” and had each proposed that he pay a financial penalty.
Bank recommends his re-election
The FCA and PRA, however, are not alleging that he acted with a lack of integrity or that he lacks fitness and propriety to continue to perform his role chief executive of Barclays, and the bank noted that its board continued to recommend his re-election as a director at the group’s annual general meeting on May 1. The board, however, is yet to determine the cut to his pay package.
The Guardian meanwhile reported that influential advisory group Institutional Shareholder Services had this week called for a vote in favour of Staley at the AGM “even though it is not without concern for shareholders”.
Last year, Barclays issued a formal written reprimand to its chief executive and that it would make “a very significant compensation adjustment” to his variable award. Staley subsequently apologised to the bank’s shareholders, saying that he had “made a mistake in becoming involved in an issue which I should have left to the business to deal with”.
Barclays noted today that it continued to provide information and cooperate with US authorities over the matter.