Barclays's Staley Lost $3.2 Million in 101 Days Amid Stock Slideby
CEO bought 6.5 million pounds of shares after winning top job
Staley's stake has devalued as shares fell 34% in London
Barclays Plc Chief Executive Officer Jes Staley has lost 2.2 million pounds ($3.2 million) in the past 101 days as the global rout in bank stocks engulfs his new employer.
Staley bought 2,790,000 shares at an average price of 233 pence on Nov. 4, about a week after he was named CEO. Barclays has since fallen 34 percent, meaning his stake, originally worth 6.5 million pounds, is now worth 4.3 million pounds.
Barclays, along with most other banks in Europe and the U.S., has plunged this year as a raft of concerns from falling oil prices to slowing growth in China have come to the fore. Staley has also faced calls from analysts and investors to address the under-performance of the investment bank, seen as the main culprit for the two-year slide in shares that’s left the bank trading 40 percent below its book value. He will present a a strategic update on March 1 alongside full-year results.
The number of shares Staley owns in Barclays has increased to 2,812,997 after he received a stock award from the bank.
Staley got some respite on Friday, with Barclays shares recovering 5 percent to 155 pence at 3:44 p.m. in London. They’re still down 11 percent this week.
As fear spreads, investors have been deserting lenders perceived as weak. Credit Suisse Group AG slumped to a 27-year low Thursday amid deepening concern that CEO Tidjane Thiamwon’t be able to execute his restructuring plan. Societe Generale SA also plunged 13 percent that day, the most since 2011, after saying it may miss profitability goals. Deutsche Bank AG, whose figures last month sparked the latest leg of the selloff, said Friday it will buy back about $5.4 billion of bonds to allay investor concern about its finances.
Standard Chartered Plc CEO Bill Winters bought a chunk of stock in his firm on Nov. 12, at an average price of 599 pence. That stake has devalued from 1 million pounds to about 700,000 pounds, with the shares now trading 30 percent lower at about 420 pence.
Winters now owns a total of 294,473 shares in the lender, after he invested another 300,000 pounds buying shares in Standard Chartered’s $5.1 billion rights offer.
Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co., spent $26.6 million to buy shares of his bank Thursday after they tumbled to the lowest price in more than two years.