* Ricci to be replaced as investment bank boss by
* Another former Diamond ally Kalaris to leave as wealth
* McGee to become CEO of Barclays Americas
By Steve Slater
LONDON, April 18 Rich Ricci, the boss of
Barclays' investment bank who collected $26 million in
deferred bonuses last month, is leaving the scandal-hit bank as
its new chief executive seeks to cut back executive pay and
repair its image.
The American-born Ricci, a star performer at Barclays known
for his love of horse racing, was a key lieutenant of Bob
Diamond, the former chief executive who left Britain's third
largest bank last year after a Libor interest rate rigging
Tom Kalaris, head of Barclays' wealth management and
Americas business and the other remaining executive close to
Diamond, will also leave.
New CEO Anthony Jenkins has been trying to put his stamp on
the bank since he took over in August and pledged to reform its
aggressive, high-risk reputation which led to Diamond and Ricci
being pilloried in parts of the British media.
Speculation intensified that Ricci, 49, who is estimated to
have earned at least 80 million pounds ($122 million) from his
19 years at Barclays, would go after Jenkins failed to publicly
back him when he unveiled a new strategy in February.
"It's part of the ongoing cultural revolution at Barclays,"
said Simon Maughan, analyst at Olivetree Securities.
"There will be a few more Diamond acolytes edged out over
the next 12 months, though obviously not as high profile."
Ricci, who has one of the most memorable names in banking,
is known for his immaculately cut green tweed suits, dark
glasses and felt hat he wears to watch his top racehorses
British people angered by large "fat cat" executive pay
packets in tough economic times derided the naming of one his
horses Fatcatinthehat after a newspaper profile of Ricci
headlined "Who's the fat cat in the hat?"
More criticism greeted his sale of shares worth more than 17
million pounds ($25.9 million) last month straight after
receiving them as part of previous deferred bonuses or long-term
British opposition Labour member of parliament John Mann
urged him on Thursday to pay it back or give it to charity.
Ricci was among 25 people named by the High Court in London
as listed in regulatory documents concerning the Libor
investigation which referred to "internal political" pressure to
set borrowing rates low to paint a rosier picture of the bank's
He has said he had been a witness in the investigation but
His pay does not have to be disclosed as he is not on the
board, but the 2011 Sunday Times Rich List estimated he had a 54
million pound fortune and he has since received and sold more
than 27 million pounds of shares.
Ricci joined Barclays in 1994 and led its acquisition of
Lehman Brothers in 2008, becoming co-head of investment banking
in 2009 and sole head of corporate and investment banking (CIB)
Barclays said he will step down as CIB boss at the end of
this month and retire from Barclays at the end of June, the same
day that Kalaris, 57, retires.
Jenkins said the changes were part of his plan to streamline
the bank, strengthen control and create a "clearer line of sight
for myself" into the investment bank. There has long been
criticism that business runs independently from the group.
The departures follow Jenkins' decision to appoint Eric
Bommensath and Tom King as co-chief executives of corporate and
investment banking and Skip McGee as chief executive of Barclays
Americas. They take effect from May 1.
Peter Horrell was named interim CEO of Wealth and Investment
Management from the same date.
NO SEVERANCE PAY
Barclays said neither Ricci nor Kalaris will receive any
severance pay or be eligible for a 2013 bonus. They will get up
to one year's base salary, which are not disclosed but are
estimated to be 700,000 pounds apiece. They will also be
eligible for deferred long-term awards built up during their
time at the bank.
McGee had been tipped for a promotion and is the most senior
ex-Lehman Brothers banker at the bank, following Barclays'
takeover of the U.S. operations of Lehman in 2008.
He had been at Lehman since 1993, and was its head of global
investment banking from 2002, after previous expertise advising
energy and power firms.
Bommensath joined Barclays in 1997 from Bankers Trust and
became head of fixed income, currencies and commodities in 2010.
King is currently head of the investment banking division,
after joining from Citigroup in 2009.
All three will be tasked with making Barclays one of the
global powers in investment banking.
Jenkins plans to cut parts of the investment bank as part of
his broader transformation plan to reduce risk-taking and lift
profitability, but he has said the business remains core.
He is cutting 1,800 jobs in corporate and investment banking
but is not going as far as rivals such as UBS or Royal
Bank of Scotland, and signalled he intends to be
challenge leading powers Goldman Sachs and J.P. Morgan
"It's a competitive market out there and they (the new
co-CEOs) have their work cut out to get to where they want to
be. But they start from a far better position than a lot of
their competitors," Olivetree's Maughan said.