Barclays review makes for uncomfortable reading, says Chairman

published 3 April 2013

Barclays has been urged to become more transparent and candid by a highly-anticipated independent review conducted top UK lawyer Anthony Salz.

The veteran lawyer, who was appointed by the bank to lead the assessment, also attacked the wages of employees at the helm of the bank, which he called the "top 70".

He said compensation for the group of 70 employees was above the median compared to peer banks.

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"For example, in 2010 average pay to these executives was overall 35% more than the market benchmark for their positions," the report stated.

"This level has come down over the past two years. In 2011 average pay for these executives was 17% more than the market."

The report said elevated pay levels would inevitably distort culture and attract people who measure their personal success principally on compensation.

The Salz review was announced last July as an effort to shake up the business following a string of reputational scandals, including a £290m settlement with UK and US regulators over LIBOR rigging.

Salz made 34 recommendations on the key areas of governance, pay and restoring trust.

Barclays Chairman Sir David Walker confessed the review made for "uncomfortable reading in parts" but would give the document careful consideration before implementing the recommendations.

"That is bound to be the case when one asks for an independent examination of this kind, and we must learn from the findings," he said in a statement.

"Our initial review of the report's recommendations is that they are substantially aligned with work already progressing under the transform programme that was initiated and is being led by [Chief Executive Officer] Antony Jenkins, overseen by the board."