Barclays faces a multimillion pound bill to lure its new finance director, Tushar Morzaria, across the Atlantic from a senior role at a US bank.
Morzaria is to receive a yet-to-be-disclosed relocation fee to move to London from New York to take up the key boardroom role which could potentially pay the 44-year-old Briton more than £6m a year.
The bank, which has embarked on a strategy to become the "go to" bank in the wake of the £290m fine for Libor rigging, will also buy Morzaria out of any long-term awards granted by his current employer JP Morgan Chase. Barclays did not disclose the value of these awards but they will be replaced with new awards of Barclays shares that will be disclosed by the bank at a later date and likely to run to millions of pounds.
The Ugandan-born accountant whose family moved to the UK in 1971 is replacing Chris Lucas who announced his retirement in February and remains under investigation by the City regulator into the way disclosures were made about the bank's 2008 fund raisings.
Morzaria will receive a salary of £800,000 plus an annual award of shares of potentially 250% of his salary – some £2m – as well as a longer-term bonus scheme under which he can receive up to 400% of his salary – up to £3.2m which would pay out over three years. He will also receive 25% of his salary – £200,000 – in cash in lieu of his pension.
The bank said that deferred and long-term awards which he forfeits a result of him accepting his new role at Barclays "will be replaced with a Barclays share award of equivalent value to the forfeited awards which will vest over the same time period (as closely as possible) as the forfeited awards".
His appointment comes amid an overhaul of the top management team at Barclays in the wake of the Libor-rigging scandal which has led to the departures of the chairman Marcus Agius, chief executive Bob Diamond, chief operating officer Jerry del Missier and head of the investment bank Rich Ricci.
Antony Jenkins, promoted from running the retail bank after Diamond quit, said he looked forward to working with Morzaria. "He will bring a welcome new perspective to what is a pivotal role," said Jenkins, who also thanked Lucas for his tenure at Barclays, which began in 2007 just as the banking crisis took hold. Morzaria's experience in investment banking should complement Jenkins' background in retail banking.
Morzaria is expected to start working at Barclays in autumn 2013 but will have a long handover period with Lucas. He will not join the board until January 2014 while Lucas, who has health problems which have not affected his ability to do his job but had a bearing on his decision to retire, will remain in post until the end of February 2014.
Morzaria is currently chief financial officer, corporate and investment banking at JP Morgan Chase, which last year was embroiled in the "London Whale" trading scandal where $6bn (£4bn) of losses were caused by London traders.
Morzaria did not work in the division where the losses occurred. He has worked in various roles since 2005 and been based in New York since 2009. Prior to that he worked at Credit Suisse, JP Morgan and SG Warburg after starting his career at accounts Coopers & Lybrand Deloitte.
Morzaria, who has two children, said he was looking forward to returning to the UK. "I am excited at the opportunity to be part of the leadership team which will deliver on the promised change in performance and culture," Morzaria said.
His former bosses at JP Morgan sent a memo to staff praising his "analytical ability, combined with calm, steady demeanour".
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