Barclays faces further boardroom upheaval after it emerged the deputy chairman who played a key role in ousting chief executive Antony Jenkins last week is also to leave the bank.
Rake will become chairman of Worldpay, the payments system company thought to be planning a stock market flotation, on 1 September.
A former accountant, Rake has been on the board of Barclays since 2008, throughout the financial crisis and Libor scandal, and the resulting changes at the top of the bank. John Varley was succeeded in 2010 by Bob Diamond as chief executive, who in turn left in the wake of the Libor crisis and was replaced by Jenkins in August 2012.
Rake, who is expected to leave the Barclays board at the end of the year, spent 30 years at accountants KPMG before embarking on a boardroom career. He also chairs telecoms company BT which held its annual meeting of shareholders on Wednesday as news of his appointment to Worldpay was revealed.
Shares in Barclays dipped initially as news of Rake’s departure emerged to add to the intrigue surrounding the axing of Jenkins. From Friday, the bank will be run by John McFarlane, the newly arrived chairman who is temporarily taking charge until a new chief executive can be found.
McFarlane’s elevation needs to be formally ratified by the Bank of England in the coming days. Regulators and City investors tend to frown upon executive chairman, preferring a seperate chief executive to be appointed.
Last week, Rake insisted it was he – not McFarlane – who orchestrated Jenkins’ departure after reflecting “long and hard on the issue of group leadership” and holding conversations with the non-executive directors on the board.
McFarlane is preparing to present the bank’s results on 29 July when he is also expected to set out any changes to the investment bank, which has been the subject of repeated controversy at Barclays. When Jenkins’ departure was announced, the board insisted there would be no change to his strategy of paring back the investment bank and cutting up to 19,000 jobs to reduce costs.
Even so, the pace of change inside the investment arm is said to be one of the reasons for the departure of Jenkins, a retail banker by background. McFarlane, who stepped in to run the insurer Aviva after the chief executive Andrew Moss left in 2012, has told staff the bank’s share price could double in the next three years or so.
Barclays said : “Sir Michael Rake is the deputy chairman and senior independent director on the Barclays board. Sir Michael intends to continue in these positions, and be a member of the board until at least the end of 2015. If and when he stands down from the Barclays board, a new senior independent director will of course have been appointed.”
This article was written by Jill Treanor, for theguardian.com on Wednesday 15th July 2015 12.42 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010