The New Bob Diamond

LONDON -- Barclays (LSE: BARC.L  ) (NYSE: BCS  ) fell 1% to 184 pence in early London trade after the bank named its new chief executive.

The FTSE 100 firm said Antony Jenkins had been appointed chief executive with immediate effect. He replaces Bob Diamond, who resigned earlier in the year following the LIBOR scandal. Before today, Jenkins had been in charge of the group's high street and business banking operations.

Marcus Agius, chairman of Barclays, said, "Antony stood out among a very competitive field of internal and external candidates because of his excellent track record transforming Barclaycard and Barclays Retail and Business Banking."

Sir David Walker, chairman-elect of Barclays, added, "The field of short-listed candidates that I met was very strong, and it was clear that Antony was the outstanding choice."

For his part, Jenkins said:

Barclays is a strong universal bank ... But we have made many serious mistakes in recent years and clearly failed to keep pace with our stakeholders' expectations. We have an obligation to all those stakeholders ... and a unique opportunity to restore Barclays' reputation by making it the "go to" bank in all of our chosen markets.

Barclay confirmed Mr Jenkins will receive a 1.1 million pound annual wage, a further 363,000 pound cash allowance in lieu of pension contributions, plus the potential to earn a 2.75 million pound maximum annual bonus. Jenkins will also be eligible to be considered for share awards of up to 400% of his annual salary in any one year.

For context, Bob Diamond collected a 1.35 million pound salary during 2011, while other bonuses, benefits, and awards took his total remuneration last year beyond 7 million pounds. For 2010, Diamond's total remuneration topped 9 million pounds.

Nice work if you can get it.

However, if you can't face backing the high rollers in the banking sector, you may wish to consider the shares favored by legendary City fund manager Neil Woodford. He sold all his bank shares well before the crash of 2008 and continues to avoid the sector completely. The free report "8 Top Dividend Shares Held By Britain's Super Investor" explains how Woodford thrashed the FTSE 100 during the 15 years to the end of 2011 -- in part by red-carding fat-cat bankers and the wider banking sector!

Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors for 2012" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.

Further Motley Fool investment opportunities:

Maynard does not own any share mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2001937, ~/Articles/ArticleHandler.aspx, 11/22/2014 4:06:42 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement