Barclays reshuffles management ahead of strategy review

Barclays (LSE: BARC.L - news) has announced a series of changes to the senior management of its investment bank weeks ahead of the release of a strategy review that will outline its plans for the future of the division

Barclays has announced a reshuffle of the senior management of its investment banking arm as the lender prepares to update investors next month on its plans for the business.

The co-chief executives of Barclays corporate and investment banking operation, Tom King and Eric Bommensath, have given up direct control of the lender’s market and investment banking divisions as part of a series of changes to the executive team.

Eric Felder, co-head of securities, has been made head of markets, while Joe McGrath, head of global finance, and Richard Taylor, head of investment banking in Europe, the Middle East and Africa, have been made joint heads of global banking.

“Working as a team, we are confident that they have the experience and vision to strengthen our ability to deliver first-class investment banking capabilities and services to our clients worldwide,” said Mr King and Mr Bommensath in a statement.

The changes came as Barclays confirmed it would on May 8 publish the results of a strategic review of its business amid shareholder pressure on chief executive, Antony Jenkins, to explain how he intends to control costs.

In a memo to staff yesterday, Mr Jenkins insisted that there would be no moves to dramatically scale back the size of the investment bank.

“I hope you will understand that it is very difficult for me to say more until we finalise our conclusions and announce them, nonetheless I want to be clear now on one aspect of our thinking: the future for Barclays will be as a strong, focused, international bank. And the investment bank will continue to be a part of that mix,” he said.

The pressure on costs followed Barclay’s announcement in February of a year-on-year rise in bonuses in the investment bank despite a fall in profits. The investment bank’s bonus pool for last year increased by £200m to £1.6bn, even though pre-tax profits in the division fell by 37pc largely as a result of a slow down in fixed-income trading.

Next (Dusseldorf: NXG.DU - news) week, Barclays will hold its annual general meeting in London at which Mr Jenkins and the bank’s chairman Sir David Walker are likely to face questions over the continued payout of large bonuses.

The bank could also face questioning over its plans to restructure its remuneration schemes in light of the incoming European Union cap on bonuses that means bankers cannot earn bonuses worth more than twice their salary. Barclays is introducing so-called “role-based pay” to ensure senior staff are still paid competitively.