According to two sources briefed on the topic, Barclays chief executive Jes Staley told staff at Barclays PLC that he expected to quit as CEO by the end of 2021. According to reports, the American banker may resign during the bank’s annual general meeting in May 2021.
Barclays said on Monday that CEO Jes Staley has resigned ahead of a UK investigation into previous ties with convicted sex offender Jeffrey Epstein.
The preliminary conclusion “makes no finds that Mr. Staley observed, or was aware of, any of Mr. Epstein’s alleged crimes,” according to a statement from Barclays, which had backed Staley during the probe.
C.S. Venkatakrishnan, the bank’s head of global markets, has taken Staley’s job with immediate effect, the bank said.
Barclays and Staley were informed late Friday of early findings from a British banking watchdog probe, according to the statement.
“This should be highlighted that the inquiry finds no evidence that Mr. Staley observed or was aware of any of Mr. Epstein’s alleged crimes, which was the primary question behind Barclays’ endorsement for Mr. Staley during Mr. Epstein’s arrest in the summers of 2019,” the statement continued.
“In light of those determinations, and Mr. Staley’s decision to challenge them,” the bank stated, “the board and Mr. Staley have agreed that he will stand down as group chief executive and as a director of Barclays.”
“Staley has successfully overseen the Barclays group with great devotion and expertise since December 2015,” Barclays said, adding that it was “disappointed” by the conclusion.
Staley was entitled to a 12-month notice period, according to the bank, and will continue to collect his annual cash and share compensation of £2.4 million ($3.3 million, 2.8 million euros), as well as his pension and other perks.
He is also entitled to reimbursement for travel expenses to his native nation of the United States.
The Financial Conduct Authority, which is investigating with the Prudential Regulation Authority of the Bank of England, issued a brief statement saying the two “do not comment on ongoing investigations or regulatory procedures.”
– Epstein connections –
Staley had stated that he last spoke with Epstein in 2015.
This was seven years after Epstein was convicted of sex offenses and before Staley became CEO of Barclays in December of that year.