* Barclays grabs finance director of JP Morgan investment
* Morzaria could earn 6 mln stg in annual pay, bonus, awards
* JP Morgan says to announce replacement in coming days
* U.S. bank praises "analytical ability...steady demeanour"
By Steve Slater
LONDON, July 16 Barclays has poached JP
Morgan executive Tushar Morzaria to become its new
finance director, offering him up to 6 million pounds ($9.1
million) in annual pay and awards to help the bank recover from
a series of scandals.
Morzaria faces a challenging job. Barclays has pledged to
improve relations with regulators and raise standards at the
bank, shortcomings exposed when it was fined $450 million in
June 2012 for rigging the Libor global benchmark interest rate.
Its capital strength is also under scrutiny. It is in talks
with the Bank of England over how to reduce leverage after being
warned last month it had to do so. Barclays said that could
force it to cut lending to British households and firms, but the
central bank said it would not allow that.
Morzaria is chief financial officer of corporate and
investment banking (CIB) at JP Morgan Chase, where he has spent
most of his career.
JP Morgan praised Morzaria's "analytical ability, combined
with his calm, steady demeanour" and said it would appoint his
successor in the coming days.
The move ends Barclays' lengthy search for a finance
director, after it said in February that Chris Lucas would step
down after six years in the role.
Morzaria, 44, will be paid a salary of 800,000 pounds and
can earn an annual bonus of up to 2 million pounds and a
long-term share award of up to 3.2 million. The long-term award
would only start paying out in five years' time.
He is expected to begin work at Barclays this autumn but
there will be a lengthy handover period. He will join the board
at the start of next year and take over as finance director when
Lucas retires at the end of February.
He was born in Uganda and moved to Britain in 1971. The
British citizen - who graduated in computer science and
accounting from Manchester University and lists running and
cycling as his interests - is a qualified chartered accountant.
His bosses at JP Morgan said in a memo to staff seen by
Reuters that Morzaria had been "an exceptional partner" who had
been instrumental in the bank's alignment of its commercial and
investment banking arms, particularly around managing expenses,
capital and liquidity.
He worked at JP Morgan from 1995 to 2002 and after three
years at Credit Suisse he rejoined the U.S. bank and
became CFO of its investment bank in 2010. Before JP Morgan he
worked at SG Warburg and Coopers & Lybrand Deloitte.
Lucas has been finance director for a tough six years and
last year was particularly difficult. He is one of four current
and former employees being investigated by UK authorities
regarding a capital injection by Qatar in 2008.
The bank has also been accused in recent years of aggressive
interpretation of regulations, paying staff too much, and it was
found to have mis-sold products to millions of customers -
leading to it paying billions of pounds in compensation.
Lucas has had health problems and although that has not
affected his ability to do his job, it influenced his decision
to retire, a person familiar with the matter said in February.
He is the only Barclays executive director still in their
post after the bank was fined over the Libor rate rigging.
Antony Jenkins replaced Bob Diamond as CEO and David Walker
replaced Marcus Agius as chairman, and they have overhauled
senior management and promised to drive through a major change
in culture and standards across the bank's 140,000 workforce.
Lucas was paid 1.9 million pounds last year, after foregoing
any annual bonus. He was paid almost 4 million pounds in both
2011 and 2010, including long-term awards.