Barclays faces a higher than expected bill to recruit Jes Staley, who began his job as the bank’s chief executive on Tuesday.
Staley, who told staff he was joining with “excitement and optimism for the future”, is being bought out of bonuses from one of his previous employers, US bank JP Morgan. Barclays had said it expected this to cost about £1.9m when his appointment was announced a month ago although the bill has now risen to more than £2m because of the rise in the value of JP Morgan’s shares.
The US banker is scheduled to address Barclays staff at the bank’s headquarters in Canary Wharf, London, on Wednesday when he is expected to set out his hopes and ambitions as chief executive following the ousting of his predecessor Antony Jenkins was ousted in July.
Staley benefited from a rise in Barclays shares on his first day following the result of annual stress tests at the Bank of England. The bank was the biggest riser in the FTSE 100, up 4.6% at 233p, and back at the level Staley spent £6.4m buying shares after his appointment on 28 October.
Barclays is paying him up to £8.25m a year – before the buyout from JP Morgan – and taking on the cost of relocating him and his family from the US.
According to his contract – dated the day his appointment was confirmed – the bank will pay his accommodation expenses for 90 days and provide him with advisers to help him find a suitable home in the UK. Barclays will cover the cost of moving personal items that fit into a 12-metre (40ft) container but has ruled out covering the removal costs of specialist items such as wine or pianos. Boats are also excluded which may be of interest to Staley who owns a luxury 28-metre wenge wood yacht.
The 58-year-old, who spent most of his career at JP Morgan before leaving three years ago to join a hedge fund, is also able to travel first class from the US, with his family. He was close to being appointed to the top Barclays role in 2012 when Jenkins was named to replace Bob Diamond, who left in the fallout from the Libor rigging crisis. But as a result of the political mood at the time, Barclays picked insider Jenkins.
Staley is also being given advice on applying for work visas and fees associated with filing tax returns.
His contract shows that he is expected to abide by the values set out by his predecessor in a mission statement and emblazoned on five huge perspex blocks that Jenkins had installed in Barclays’ headquarters. Each of the five blocks displays one of the values of respect, integrity, service, excellence and stewardship. They have been pushed back along the walls of the Barclays foyer.
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