Breaking News

U.S. 30-Year Mortgage Rate Falls to New Low at 3.92%: Freddie Mac
Tweet TWEET

Barclays Says McGee to Step Down as Head of Americas Unit

Hugh “Skip” McGee, Barclays Plc (BARC)’s top-paid executive and one of the most senior dealmakers to join the British bank following its purchase of Lehman Brothers Holdings Inc.’s U.S. unit, is leaving as investors push the lender to curb bonuses.

McGee will step down as chief executive officer of the Americas division at the end of the month, London-based Barclays said in a statement today. The 54-year-old will be replaced by Joe Gold, global head of client capital management.

He’s leaving as CEO Antony Jenkins prepares to outline his strategy for the investment bank on May 8. Barclays is under pressure to revive profitability at its securities unit and rein in costs, including pay. Jenkins, who took over as CEO after the bank was fined for rigging benchmark interest rates, is also trying to overhaul a culture that veered into arrogance and greed, according to a review commissioned by the bank.

“McGee was the guy behind a push for higher pay for bankers and with this move Jenkins is taking a much tougher line on compensation,” said Christopher Wheeler, a banking analyst at Mediobanca SpA (MB) in London. “It will take longer to assess the collateral damage this may do to the franchise and what it means about Barclays’s commitment to the U.S.”

Source: Barclays Plc via Bloomberg

Hugh "Skip" McGee will step down as chief executive officer of the Americas division at the end of the month, London-based Barclays said in a statement today. Close

Hugh "Skip" McGee will step down as chief executive officer of the Americas division at... Read More

Close
Open
Source: Barclays Plc via Bloomberg

Hugh "Skip" McGee will step down as chief executive officer of the Americas division at the end of the month, London-based Barclays said in a statement today.

The shares slipped 0.3 percent at 248.20 pence as of 2 p.m. in London trading. The stock has declined 8.2 percent so far this year, the second-worst performer among Britain’s five biggest banks after Royal Bank of Scotland Group Plc.

‘Outstanding Service’

Barclays said it’s making the change as the Dodd-Frank Act requires it to set up a U.S. holding company, forcing managers to focus on regulation and compliance matters.

“Skip McGee has delivered outstanding service over the last 21 years, both at Barclays and previously at Lehman,” Jenkins, 52, said in the statement. “He has been the longest-serving head of investment banking on Wall Street, and our most senior client-facing executive, responsible for driving some of the industry’s highest profile transactions.”

McGee, 54, was part of the team that sold Lehman’s U.S. units to Barclays in 2008, and was among a group of top executives who negotiated agreements to stay. McGee’s compensation was worth at least $15 million for one year, according to a colleague close to him who wasn’t authorized to speak about pay packages. In March, the bank said McGee received a further 8.87 million pounds in shares, the most among the lender’s 12 most senior executives.

Barclays Chairman David Walker was last week forced to defend the bonuses paid to investment bankers as 24 percent of shareholders voting at the bank’s annual general meeting rejected the compensation awarded to executives for 2013. Walker said the lender was “losing people who were crucial to the future” of the bank.

To contact the reporters on this story: Edward Evans in London at eevans3@bloomberg.net; Elisa Martinuzzi in Milan at emartinuzzi@bloomberg.net

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.