Bloomberg News

Barclays Names JPMorgan’s Morzaria as CFO to Replace Lucas (3)

July 16, 2013

Barclays Names JPMorgan’s Morzaria as CFO to Replace Chris Lucas

The logo of Barclays Plc sits on display outside the company's headquarters in London. Photographer: Simon Dawson/Bloomberg

Barclays Plc (BARC), Britain’s second-largest bank by assets, hired Tushar Morzaria from JPMorgan Chase & Co. (JPM:US) to replace Chris Lucas as chief financial officer.

Morzaria, CFO of corporate and investment banking at New York-based JPMorgan, will join Barclays in the autumn before Lucas retires on Feb. 28, the London-based bank said in a statement today. JPMorgan said in a memorandum to employees it will name a successor to Morzaria, 44, in coming days.

“It’s a good choice,” said Chirantan Barua, an analyst at Bernstein Research in London with an outperform rating on Barclays. His “investment banking background helps because that’s the one we want to invest in Barclays for, and that’s the area which comes under risk every time from politicians.”

Antony Jenkins, who took over as chief executive officer in August, is trying to reduce costs and rebuild regulators’ confidence in the company following the lender’s 290 million-pound ($438 million) fine for rigging benchmark interest rates. Lucas, 52, is the last of ex-CEO Robert Diamond’s senior executives to depart. The investment bank generated about half of the bank’s 2012 revenue, data compiled by Bloomberg show.

The stock slipped 0.5 percent to 308.15 pence in London trading for a market value of 40 billion pounds. The shares are up 17 percent this year, making it the second best-performing U.K. bank stock this year after Lloyds Banking Group Plc.

Annual Salary

Morzaria’s annual salary will be 800,000 pounds and his annual bonus will be as much as 2 million pounds. His long-term incentives may be as much as 3.2 million pounds, Barclays said.

Morzaria, a British citizen, joined JPMorgan in 1995 and held positions including head of valuation controls group through 2002. After a stint at Credit Suisse Group AG, he re-joined JPMorgan in 2005 as the CFO of the investment bank for Europe. He had also been CFO of the investment bank, according to an internal memo obtained by Bloomberg News today.

“He will bring a welcome new perspective to what is a pivotal role,” Jenkins, 52, said in the statement.

Morzaria “clearly comes from a good stable and knows investment banking, supporting Jenkins,” the former head of Barclays’s consumer unit, said Christopher Wheeler, an analyst at Mediobanca SpA in London who rates Barclays outperform.

Morzaria’s investment banking experience may be especially useful as U.S. regulators move to compel the subsidiaries of overseas banks to hold more capital locally, Barua added.

Regulatory Probe

Lucas was one of four past and present employees being probed by regulators over whether Barclays adequately disclosed fees paid to the Qatar Investment Authority as part of a 7 billion-pound fundraising during the financial crisis, a move that helped the lender avoid taking government money.

Lucas, who declined a bonus for last year following the fine for manipulation of the London interbank offered rate, will receive his 800,000-pound annual salary until he steps down, according to Barclays. He will also be eligible for a bonus for 2013.

Diamond, Chairman Marcus Agius and Chief Operating Officer Jerry Del Missier all stepped down in the wake of the Libor fine. The bank said in February Lucas and General Counsel Mark Harding would step down. Two months later, investment-banking chief Rich Ricci and wealth-management head Tom Kalaris said they would also depart.

‘Cultural Tendency’

An internal report in April criticized pay at the investment bank and urged the lender to boost transparency. Former Financial Services Authority Chairman Adair Turner told lawmakers last year Barclays “had a cultural tendency to be always pushing the limit” of what was allowed under the rules.

Jenkins’s appointments include Shaygan Kheradpir as chief operations and technology officer, responsible for helping the lender automate more systems to cut costs, and former Financial Services Authority CEO Hector Sants as head of compliance and government and regulatory relations. Sants’s job includes Del Missier’s former responsibility for managing regulatory changes.

To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net.

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net


Ebola Rising
LIMITED-TIME OFFER SUBSCRIBE NOW

Companies Mentioned

  • JPM
    (JPMorgan Chase & Co)
    • $59.77 USD
    • -0.47
    • -0.79%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus