Barclays’ Jenkins to ‘Shred’ Culture, Bonuses
Barclays Chief Executive Antony Jenkins, who was grilled yesterday in front of the U.K.’s Parliamentary Commission for Banking Standards, appears tired of his foot soldiers putting him in harm’s way.
The scandal-plagued bank seemingly finds itself in a new mess each week, with its fishy fundraising for Qatar being the latest highlight. Jenkins pushed back on Tuesday, telling the commission that he is actively “shredding” the bank’s past culture, which he said is “too short-term focused, too aggressive and on occasions, too self-serving,” according to The Wall Street Journal.
The shredding that Jenkins is referring to is a multi-faceted approach that includes training, performance assessments and greater accountability for employees. But more so it means job cuts. And, if reports hold true, the timing of the cuts will be brutal for those affected.
Several senior bankers, including Dali Bacha, European head of equity derivatives at Barclays, are departing from the bank’s equities business just days before bonuses are doled out, leaving questions as to whether the moves were entirely voluntary. And a source within the bank tells us that direct job cuts will occur before bonus day in the U.S., leaving those affected with little to fall back on.
Indeed Mr. Jenkins, you are shredding.
UPDATE: The shredding has begun. Barclays cut between 5% and 10% of its capital markets, advisory and other investment banking units in the U.S. on Tuesday, just days before bonuses are scheduled to be announced, a source within the bank told eFC.
Test Your Skills (eFinancialCareers)
Here’s a sampling of some of the more interesting questions recently asked of M.B.A. graduates and prospective interns seeking an investment banking job. Test your skills.
Unnamed Barclays’ employees were recorded discussing making a competing takeover bid against one of the firm’s clients. The evidence is being used in a lawsuit filed by CF Partners, which claims it hired Barclays to work on the bid and the bank went behind their back.
Barclays will do some hiring as part of its management shakeup. Chairman David Walker said that an unnamed number of new non-executive directors are "in the pipeline" to join the firm later this year.
Goldman Quiz (eFinancialCareers)
If you want a job at Goldman Sachs and are wondering which division is best deserving of your attention, you may want to check out the investment firm’s new careers quiz.
Royal Bank of Scotland is expected to plead guilty as part of a $780 million settlement with authorities over Libor rate manipulation claims. Some of the money could come out of the employee bonus pool. John Hourican, the head of RBS’s investment banking arm, will step down over the scandal.
Happy Trails (Financial Times)
Jim O’Neill, chairman of Goldman Sachs’ asset management arm, will retire later this year. O’Neill, who has been a Goldman partner since 1995, is credited with coining the term oft-used term BRICs, an acronym for the economies of Brazil, Russia, India and China.
Strings Attached (eFinancialCareers)
UBS is paying larger cash bonuses than rivals with a higher up-front percentage, but there are several catches.
Buzz Around the Office
Getting the Bird (The Telegraph)
A Scottish man visiting New Zealand is short $1,100 after he was robbed…by a parrot. The bird flew into the open window of his camper and took off with the cold hard cash.
List of the Day: Switching Careers
Before quitting your job to move into a new industry, read these tips.
- Make a list of skills that are transferable to your new career path.
- Switch industries or roles, but not both.
- Get some experience in your new path – even if it’s volunteering – before you quit.
