Barclays CEO Jes Staley has been fined a total of £642,430 by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) for trying to unmask the identity of a whistleblower who criticised a colleague.
The regulators launched their probe into the matter last year and concluded that Staley failed to act with due skill, care and diligence and made serious errors of judgement.
“I have consistently acknowledged that my personal involvement in this matter was inappropriate, and I have apologised for mistakes which I made. I accept the conclusions of the Board, the FCA, and the PRA, following their respective investigations, and the sanctions which they have each applied,” Staley said.
However, the watchdogs’ findings did not reveal that Staley acted with a “lack of integrity” or lacked “fitness and propriety”.
FCA executive director of enforcement and market oversight Mark Steward said: “Given the crucial role of the Chief Executive, the standard of due skill, care and diligence is more demanding than for other employees. Mr Staley breached the standard of care required and expected of a Chief Executive in a way that risked undermining confidence in Barclays’ whistleblowing procedures.”
The regulators also said that Staley agreed to settle at an early stage of the probe and qualified for a 30% discount on the fine.
At the same time, the bank also imposed a £500,000 cut to Staley’s bonus for 2016.
Barclays chairman John McFarlane said: “The Group’s whistleblowing processes are fundamental to ensuring that individuals feel comfortable raising concerns and are encouraged to do so.
“Having considered the findings of the FCA and PRA, the Board remains satisfied with its conclusions as set out in the Group’s announcement of 10 April 2017. Accordingly, the Board has now confirmed its decision of April 2017 and has made a very significant adjustment to Jes’s variable compensation on the recommendation of the Board Remuneration Committee.”