Barclays freezes ex-CEO’s $29 million bonus as regulators probe hyperlinks to Jeffrey Epstein

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The financial institution mentioned in its annual report printed on Wednesday that it has suspended bonus and share funds to Staley whereas regulators probe his hyperlinks to the financier, who killed himself in 2019 whereas awaiting trial on intercourse trafficking prices.

Staley owns 9.1 million unvested shares which are topic to efficiency measures, in response to the annual report. He holds one other 2.1 million unvested shares that aren’t topic to efficiency assessment. These shares are value roughly £21.3 million ($29 million) based mostly on Tuesday’s closing worth.

The American government owns 6.8 million shares in Barclays (BCS) outright.

Epstein, a multimillionaire and convicted pedophile who was charged with intercourse trafficking by US federal prosecutors, died in a New York jail cell.

The Monetary Conduct Authority (FCA) and the Financial institution of England’s Prudential Regulation Authority (PRA) are investigating the connection between the financier and the previous high Barclays banker. The probe is concentrated on how Staley had characterised the connection to his employer.

Staley left Barclays final 12 months after the financial institution was advised the preliminary conclusions of the investigation. Staley is contesting these findings.

Barclays mentioned Wednesday that it had suspended the vesting of the previous CEO’s shares “pending additional developments in respect of the regulatory and authorized proceedings associated to the continuing FCA and PRA investigation.”

Earlier than becoming a member of Barclays as CEO in December 2015, Staley labored for greater than 30 years at JPMorgan (JPM), the place he served as head of its funding banking division. His relationship with Epstein dated again to 2000, when he grew to become head of JPMorgan’s non-public financial institution.

“He was already a shopper. The connection was maintained throughout my time at JPMorgan, however as I left Morgan it tapered off fairly considerably,” Staley advised reporters on a name in February 2020.

Requested then whether or not he regretted his relationship with Epstein, Staley mentioned: “Clearly I believed I knew him effectively and I did not. And for positive with hindsight of what everyone knows now I deeply remorse having had any relationship with Jeffrey Epstein.”

Staley had advised the Barclays board that he had no contact with Epstein since turning into Barclays CEO.

Staley will obtain his annual mounted pay value £2.4 million ($3.3 million) in money and shares, plus a pension allowance of £120,000 ($164,000) and different advantages till October 31, 2022, the financial institution mentioned when he stepped down on November 1. He is additionally eligible for the prices of relocating to the USA.

Barclays mentioned Wednesday that it “doesn’t at present count on to make additional selections” on the previous CEO’s compensation “till the conclusion of … regulatory and authorized proceedings.”

— Mark Thompson contributed reporting.

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