For the past 2 years we had been keeping an eye on the outcomes of the regulators investigations into whistleblowing at Barclays. Both UK and US authorities have found CEO, Jes Staley’s behaviour to be unacceptable and the company has been fined over $15m as a result. We therefore expected the Remuneration Committee to take action and reflect in the CEO's remuneration appropriately, given the size of the fines as well as the reputational damage caused.
The Remuneration Committee used the malus provision to reduce Mr Staley's bonus that was awarded in 2016 by £500K, but they have not used malus against any of his outstanding LTIP awards. Furthermore, this year (2019), the company missed most of their financial targets under the bonus arrangement and yet the personal targets have paid out at nearly maximum.
In our opinion, the awards made in 2019 were not appropriately reflective of the misconduct and the Remuneration Committee should have used their discretion to reduce his payments under the annual bonus plan.
29% of shareholders voted against the remuneration report at the 2019 AGM.