Barclays’s Stephenson Leaves for UBS as Departures MountAmbereen Choudhury and Elisa Martinuzzi
Barclays Plc investment-banking Chairman Ros Stephenson is joining UBS AG, becoming the latest senior executive to leave the U.K.’s second-largest lender amid a reorganization of the securities business.
Stephenson, 52, will become UBS’s global chairman of corporate client solutions and be based in New York, reporting to investment bank head Andrea Orcel, the Swiss lender said yesterday in a statement. Stephenson will join the executive committees of the investment bank and the Americas in September.
Barclays Chief Executive Officer Antony Jenkins, 52, is under pressure to boost profit and reshape the investment bank, the biggest source of income for the firm, after falling behind on targets. Hugh “Skip” McGee, 54, one of the most senior dealmakers to join Barclays when it acquired the North American operations of Lehman Brothers Holdings Inc. in 2008, stepped down as CEO of the Americas this week, and Robert Morrice, the Asia-Pacific chairman and CEO, is retiring after 17 years.
“We have seen Barclays lose a number of senior and high-profile professionals this week,” said Christopher Wheeler, a Mediobanca SpA analyst. “It implies some major changes at next week’s strategy update. While this will please the market, only time will tell what the collateral damage is to the revenue line.”
Other executives to leave London-based Barclays include Hans-Joerg Rudloff, 73, who retired as investment-banking chairman in February. Larry Wieseneck, 48, co-head of securities, is departing at the end of June.
Paul Parker, 50, the bank’s head of mergers and acquisitions, is expected to quit, the Financial Times reported on its website yesterday, citing people familiar with the bank. Parker and Kerrie Cohen, a Barclays spokeswoman in New York, didn’t reply to messages.
“Some of the people that we’ve seen leaving is surprising,” Edward Firth, an analyst at Macquarie Group Ltd., said by phone. “It’s also understandable given the recent restructuring news.”
Barclays plans to move its commodities division into a so-called bad bank of unwanted assets and units to be overseen by Eric Bommensath, a person familiar with the plan said April 30. The bank is scheduled to report first-quarter earnings on May 6 and present its strategy to investors May 8.
Stephenson joined Barclays when it acquired the operations of Lehman, where she helped start the financial sponsors group, which advised private-equity firms such as KKR & Co.
Ties with private-equity firms helped Barclays overtake competitors in managing stock sales in the U.S., where Barclays ranked second in 2012 and fifth last year, data compiled by Bloomberg show.
The U.S. remains a key driver of the firm’s advisory and equity-underwriting revenue. Barclays ranks seventh in stock underwriting and fourth in merger advice in the U.S. this year.
While the bank has expanded beyond its fixed-income roots in Europe since acquiring Lehman, it’s still a laggard in the region. Barclays ranks 11th in underwriting European stock sales this year, down from ninth last year, the data show.