The New Bob Diamond

Before you go, we thought you'd like these...
Before you go close icon

LONDON -- Barclays (ISE: BARC.L) (NYS: BCS) fell 1% to 184 pence in early London trade after the bank named its new chief executive.

The FTSE 100 firm said Antony Jenkins had been appointed chief executive with immediate effect. He replaces Bob Diamond, who resigned earlier in the year following the LIBOR scandal. Before today, Jenkins had been in charge of the group's high street and business banking operations.

Marcus Agius, chairman of Barclays, said, "Antony stood out among a very competitive field of internal and external candidates because of his excellent track record transforming Barclaycard and Barclays Retail and Business Banking."


Sir David Walker, chairman-elect of Barclays, added, "The field of short-listed candidates that I met was very strong, and it was clear that Antony was the outstanding choice."

For his part, Jenkins said:

Barclays is a strong universal bank ... But we have made many serious mistakes in recent years and clearly failed to keep pace with our stakeholders' expectations. We have an obligation to all those stakeholders ... and a unique opportunity to restore Barclays' reputation by making it the "go to" bank in all of our chosen markets.

Barclay confirmed Mr Jenkins will receive a 1.1 million pound annual wage, a further 363,000 pound cash allowance in lieu of pension contributions, plus the potential to earn a 2.75 million pound maximum annual bonus. Jenkins will also be eligible to be considered for share awards of up to 400% of his annual salary in any one year.

For context, Bob Diamond collected a 1.35 million pound salary during 2011, while other bonuses, benefits, and awards took his total remuneration last year beyond 7 million pounds. For 2010, Diamond's total remuneration topped 9 million pounds.

Nice work if you can get it.

However, if you can't face backing the high rollers in the banking sector, you may wish to consider the shares favored by legendary City fund manager Neil Woodford. He sold all his bank shares well before the crash of 2008 and continues to avoid the sector completely. The free report "8 Top Dividend Shares Held By Britain's Super Investor" explains how Woodford thrashed the FTSE 100 during the 15 years to the end of 2011 -- in part by red-carding fat-cat bankers and the wider banking sector!

Investing is by no means easy in today's uncertain economy. That's why we've published "Top Sectors for 2012" -- our guide to three favorable industries. This free report will be dispatched immediately to your inbox.

Further Motley Fool investment opportunities:

The article The New Bob Diamond originally appeared on Fool.com.

Maynard does not own any share mentioned in this article. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners