Barclays PLC, which is seen embroiled in the LIBOR fixing scandal, which saw the exit of key executives, announced yesterday that David Walker would be the bank’s new Chairman. The move to appoint David Walker clearly hints at Barclays trying to revive its image which has taken a beating amidst the LIBOR fixing scandal.
David Walker, a 72 year old with vast experience in the financial markets was formerly the BoE’s Treasury official and has been recognized widely for his contribution to the governance manuals for most of UK’s banks. David Walker will be joining Barclays on September 1st as a non-executive director. He will be succeeding Marcus Agius.
In his new role, Walker would be paid 750,000 per year along with Barclay’s shares worth 100,000 and would work four days a week.
David Walker, a Cambridge university graduate currently holds the position of a senior advisor to Morgan Stanley, a US investment bank. He will be stepping down from this position before taking up his new role at Barclays.
Prior to this, Walker was the chairman of Morgan Stanley’s international operations unit and previously worked with Llyods Group as a deputy chairman since 2007.
Walker’s first task would be in identifying a new CEO for the bank after Bob Diamond, resigned amidst the scandal. Current chairman, Agius wrote to his staff that he has been reviewing the potential CEO’s for the role but that it would take time to find someone most appropriate for the job.
Barclays was fined approximately $453 million in June by regulators for manipulating the interbank lending rates. In the aftermath, the bank saw key executives resign, including the former CEO and Marcu Agius who decided to stay on until he could find a suitable successor to the bank. Besides LIBOR scandal, Barclays also courted fresh controversy over the resignation and severence pay to former COO, Jerry Del Missier. The company shares lost close to 12% of its market value since the allegations come to light. Shares closed at 179 pence before the announcement and could possibly increase during today’s trading session. Previously, ratings agencies, Moody’s and Standard and Poors had lowered the outlook for Barclays to negative.
Commenting on his new role, Walker said that he was keen to play his part to move the bank forward. He said that Barclays has a crucial role to play in the UK’s banking sector.
David Walker was also cruicial in playing his part for co-leading the independent review of the FSA’s report into the RBS failure.