Barclays to pay new chief Staley up to $12.6 million a year

Wed Oct 28, 2015 10:58am EDT
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By Steve Slater

LONDON (Reuters) - Barclays (BARC.L: Quote) will pay incoming chief executive James "Jes" Staley up to 8.24 million pounds ($12.6 million) a year after appointing the former JPMorgan (JPM.N: Quote) investment bank boss to one of the most prominent posts in British business.

Staley will join Barclays at the start of December, having been widely expected to be appointed after sources and media reports said he had been chosen pending regulatory approval.

American-born Staley, 58, faces challenges including improving Barclays' reputation after a series of scandals, cutting costs and deciding how big an investment bank it should keep in the face of tougher regulations.

Staley said on Wednesday he planned to complete a restructuring of the investment bank and Barclays must avoid an adversarial relationship with regulators.

"We will complete the necessary transformation and repositioning of the investment bank to a less capital-intensive model," Staley said in a memo to staff.

Barclays Chairman John McFarlane said Staley had the leadership talent and wide experience to improve shareholder value and take the bank forward.

"In particular, he understands corporate and investment banking well, the repositioning of which is one of our major priorities," McFarlane said.

Analysts say Staley should improve morale and set a clear strategy for the investment bank after years of uncertainty, but warned against aggressively building it back up.   Continued...

Jes Staley speaks during a panel discussion at the Institute of International Finance (IIF) annual meeting in Washington September 25, 2011. REUTERS/Yuri Gripas