Barclays boss Jes Staley has quit following the preliminary findings of an investigation into his role as private banker to disgraced financier and convicted sex offender Jeffrey Epstein.
A report by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) is due next month, with a first draft sent to Mr Staley last Friday.
After receiving the report, which looked into whether the bank and Mr Staley played down his relationship with Epstein, the chief executive quit the bank and said the conclusions will be contested.
It is understood the early draft suggests he played down his role in Epstein’s affairs while acting as his private banker in a previous job.
Barclays said: “It should be noted that the investigation makes no findings that Mr Staley saw, or was aware of, any of Mr Epstein’s alleged crimes, which was the central question underpinning Barclays’ support for Mr Staley following the arrest of Mr Epstein in the summer of 2019.”
The bank’s board said it is “disappointed at this outcome” but details of the report have not been published.
Payoff
Mr Staley will get a £2.5 million payoff and continue to receive other benefits for a year, the bank said.
He will also be eligible to receive repatriation costs to the US and could receive more cash, although no decision has been made.
The FCA and PRA declined to comment.
Mr Staley has previously said he “deeply regrets” his relationship with Epstein, after acting as his private banker while working for JP Morgan, and continuing for seven years after the financier was convicted of sex offences.
His last contact with Epstein had been in the autumn of 2015, shortly before he joined Barclays, but not before he and his wife sailed to Epstein’s private island for lunch that year.
He said he had no contact with Epstein once he joined the bank in December 2015.
The FCA’s investigation was focused on a letter the company wrote to the watchdog following Epstein’s death in the US and subsequent reports of Mr Staley’s relationship while running JP Morgan’s private bank for wealthy clients.
He will be replaced at Barclays by CS Venkatakrishnan, who is currently head of global markets for the bank.
Barclays said succession planning has been in place for some time and he had been identified as the preferred candidate for more than a year.
He will be paid £2.7 million a year in fixed pay, made up of 50% cash and 50% Barclays shares, alongside a £135,000 pensions contribution.
The new boss could also receive an annual bonus of up to £2.5 million and long-term bonuses in shares worth up to £3.8 million.
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