Barclays Plc (BARC), the U.K.’s second- largest lender, should hire more board members with banking experience in order to “challenge effectively the performance of management,” according to an internal review.
Barclays’s board ordered the review of its business practices on July 2, a day before Chief Executive Officer Robert Diamond resigned. Diamond had that day pledged to stay on to “get to the bottom” of the bank’s role in the Libor scandal.
Antony Jenkins, 51, who replaced Diamond in August, is seeking to rein in executive pay and give more of the bank’s profits to shareholders to help restore investor confidence. Barclays has reviewed 75 of its units to weed out those that pose a reputational risk or don’t make profits after regulators last year fined it 290 million pounds ($438 million) for rigging of Libor benchmark rates.
“Barclays should include among its non-executive directors a sufficient number with directly relevant banking expertise,” said the report, led by Anthony Salz, executive vice chairman at Rothschild, published today in London. “This will help the board to challenge effectively the performance of management, to satisfy itself that risk-management systems are robust, and to test business practices.”
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