Barclays Names Starwood Hotels CEO Among Non-Executive DirectorsHoward Mustoe
Barclays Plc appointed two non-executive directors to bolster oversight at the lender as Chief Executive Officer Antony Jenkins seeks to improve profitability and regain the confidence of investors and the British public.
Frits van Paasschen, CEO of Starwood Hotels & Resorts Worldwide Inc., joins the board on Aug. 1, while Michael Ashley, accounting firm KPMG LLP’s European head of risk management, will start on Sept. 1, Barclays said in a statement today.
Jenkins, 51, who replaced Robert Diamond in August, is seeking to rein in executive pay and give more of the London-based bank’s profits to shareholders to help restore investor support. Last week, Barclays announced the departures of its investment-banking chief, Rich Ricci, and wealth-management head Tom Kalaris, two of the last remaining members of Diamond’s management team.
“Frits brings a valuable marketing and retail background as well as experience driving a turn-around strategy,” Chairman David Walker said in today’s statement. “Michael brings strong financial skills and an extensive knowledge of banking. Michael’s background in ethics will also be valuable as Barclays continues to embed its recently launched purpose and values.”
Barclays, the U.K.’s second-largest lender by assets, was told on April 3 that it should hire more board members with banking experience in order to “challenge effectively the performance of management,” according to a review led by Anthony Salz, executive vice-chairman at Rothschild.
Ricci is being replaced by Eric Bommensath and Tom King as co-CEOs of corporate and investment banking in May. Peter Horrell, who joined the bank in 1990, will become interim head of the wealth unit.
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 the firm 290 million pounds ($442 million) for rigging Libor benchmark rates.