{"id":6827,"date":"2019-01-28T16:23:39","date_gmt":"2019-01-28T16:23:39","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/barclays-boss-was-up-at-2am-over-bonus\/"},"modified":"2019-01-28T16:23:39","modified_gmt":"2019-01-28T16:23:39","slug":"barclays-boss-was-up-at-2am-over-bonus","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/barclays-boss-was-up-at-2am-over-bonus\/","title":{"rendered":"Barclays boss was &#8216;up at 2am&#8217; over bonus"},"content":{"rendered":"\n<div property=\"articleBody\">\n<figure class=\"media-landscape has-caption full-width lead\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                <img loading=\"lazy\" decoding=\"async\" class=\"js-image-replace\" alt=\"Roger Jenkins\" src=\"https:\/\/ichef.bbci.co.uk\/news\/320\/cpsprodpb\/051B\/production\/_105370310_gettyimages-806188000.jpg\" width=\"976\" height=\"549\"\/><span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Getty Images<\/span><\/p>\n<p>            <\/span><figcaption class=\"media-caption\"><span class=\"off-screen\">Image caption<\/span><br \/>\n                <span class=\"media-caption__text\"><br \/>\n                    Roger Jenkins was executive chairman at Barclays Capital<br \/>\n                <\/span><br \/>\n            <\/figcaption><\/figure>\n<p class=\"story-body__introduction\">A senior banker at Barclays panicked at 02:00 at the peak of the 2008 banking crisis that, if the bank was nationalised, his bonus would be jeopardised, a court has heard.<\/p>\n<p>Barclays was among banks needing extra funding during the crisis.<\/p>\n<p>Roger Jenkins discussed with colleagues a plan to raise money privately, to avoid having to accept taxpayer money.<\/p>\n<p>A bailout deal from the government would have meant extra disclosure of executive bonuses.<\/p>\n<p>The bank later raised money from Middle Eastern investors and avoided a government bailout.<\/p>\n<p>The court heard a conversation between Barclays executives on 8 October 2008, the day the government announced \u00a350bn of taxpayers&#8217; money would be made available to bail out the banks.<\/p>\n<h2 class=\"story-body__crosshead\">&#8216;Highly motivated&#8217;<\/h2>\n<p>&#8220;At 2 o&#8217;clock in the morning I was panicking that we were about to get nationalised and you guys must have been the same because the government would, wouldn&#8217;t look kindly on compensation over a million dollars,&#8221; said Roger Jenkins, then an executive chairman at Barclays Capital &#8211; the investment banking arm of the business.<\/p>\n<p>Prosecuting for the Serious Fraud Office, Edward Brown QC quoted from a transcript of a telephone conversation that day between Mr Jenkins; Barclays Capital Executive Richard Boath and another senior banker at the firm, Jeff Weiss.<\/p>\n<figure class=\"media-landscape has-caption full-width\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                 <span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">Getty Images<\/span><\/p>\n<p>            <\/span><figcaption class=\"media-caption\"><span class=\"off-screen\">Image caption<\/span><br \/>\n                <span class=\"media-caption__text\"><br \/>\n                    Former chief executive of Barclays, John Varley<br \/>\n                <\/span><br \/>\n            <\/figcaption><\/figure>\n<p>In the conversation, the executives discuss the risk of their bonuses being disclosed, together with those of Barclays&#8217; group chief executive, John Varley, and Barclays Capital chief executive, Bob Diamond. <\/p>\n<p>The court heard the men&#8217;s pay:<\/p>\n<ul class=\"story-body__unordered-list\">\n<li class=\"story-body__list-item\">Roger Jenkins was paid \u00a339m in 2007, and was recommended a payment of \u00a325m for his role in these capital raisings alone<\/li>\n<li class=\"story-body__list-item\">Richard Boath was paid \u00a32.87m in 2007, and \u00a31.87m in 2008<\/li>\n<li class=\"story-body__list-item\">John Varley was paid \u00a34.23m in 2007 and \u00a31.1m in 2008 <\/li>\n<li class=\"story-body__list-item\">Wealth chief Tom Kalaris was paid \u00a313m in 2007 and \u00a37.7m for 2008<\/li>\n<li class=\"story-body__list-item\">Finance Director Chris Lucas was paid \u00a32m for 2007 and \u00a31.45m for 2008<\/li>\n<\/ul>\n<p>&#8220;You may think that some of these men were highly motivated to keep their jobs,&#8221; Mr Brown QC said.<\/p>\n<h2 class=\"story-body__crosshead\">&#8216;Humble pie&#8217;<\/h2>\n<p>In a further phone discussion the following week, 14 October, between Jenkins and Boath, Barclays group chief executive John Varley was described as being &#8220;scared to death&#8221; of government intervention, and Bob Diamond as &#8220;paranoid&#8221; and afraid of losing his job.<\/p>\n<p>Mr Jenkins told a colleague in July 2008 he was going to visit Sheikh Hamad, Prime Minister of Qatar, &#8220;to eat humble pie&#8221;, Southwark Crown Court heard.<\/p>\n<figure class=\"media-landscape has-caption full-width\"><span class=\"image-and-copyright-container\"><\/p>\n<p>                 <span class=\"off-screen\">Image copyright<\/span><br \/>\n                 <span class=\"story-image-copyright\">AFP<\/span><\/p>\n<p>            <\/span><figcaption class=\"media-caption\"><span class=\"off-screen\">Image caption<\/span><br \/>\n                <span class=\"media-caption__text\"><br \/>\n                    Barclays&#8217; Wealth Management chief executive Tom Kalaris<br \/>\n                <\/span><br \/>\n            <\/figcaption><\/figure>\n<p>The visit came as Barclays realised not enough shareholders were buying new shares to boost the bank&#8217;s finances.<\/p>\n<p>According to a conversation between executives Roger Jenkins and Richard Boath that left it with a &#8220;nightmare&#8221;.<\/p>\n<p>The fraud trial is now in its second week. It is the first criminal trial of senior UK banking executives in the wake of the financial crisis. <\/p>\n<h2 class=\"story-body__crosshead\">Pie and kisses<\/h2>\n<p>Qatar had expected to end up with fewer shares, according to prosecutors.<\/p>\n<p>Because so few other shareholders had taken up their shares, Qatar would have to buy more shares under the deal struck with Barclays, leaving it with a larger proportion of the shares and a lower rate of return than expected.<\/p>\n<p>In a conversation at 13:52 on 16 July 2008 with Mr Boath, Mr Jenkins said: &#8220;One is I&#8217;m going to eat humble pie and kiss arse tomorrow now at 1.30.&#8221;<\/p>\n<p>Richard Boath: &#8220;Yeah&#8221;<\/p>\n<p>Roger Jenkins: &#8220;At his house.&#8221;<\/p>\n<p>Richard Boath: &#8220;Okay. [&#8230;]&#8221;<\/p>\n<p>Roger Jenkins: &#8220;Well yeah, he&#8217;s gonna\u2026 he&#8217;s not gonna get the benefit of his three, three and three quarters which you wouldn&#8217;t want to print anyway.&#8221; <\/p>\n<p>Qatar had originally demanded a fee of 3.75%, the court heard.<\/p>\n<p>In an email at 14.15 on the same day, Roger Jenkins wrote to Varley, Mr Diamond and Mr Lucas notifying them of his plans to visit the Qatari leader: &#8220;Gents\u2026 I have arranged to go to sit with hamad\u2026 so at least its face to face as it looks like he&#8217;ll be a 10% holder and the outcome is something they never bargained for. We will need to co-ordinated on press as they won&#8217;t want to be seen to be mugs again losing !&#8221;<\/p>\n<p>Mr Jenkins flew to visit Sheikh Hamad in the South of France the following day, the jury heard.<\/p>\n<p>Mr Brown QC, said the evidence showed Mr Jenkins and Mr Boath knew the fee for an Advisory Services Agreement (ASA) was in fact part of the Qatari&#8217;s fee for investing of 3.25%. <\/p>\n<p>&#8220;The conversations on the 16 and 18 June plainly show that Mr Jenkins and Mr Boath knew that the ASA element was part of the fee for investing and couldn&#8217;t reveal it,&#8221; Mr Brown said.  <\/p>\n<p>John Varley, Roger Jenkins, Tom Kalaris and Richard Boath have all denied conspiracy to commit fraud. The trial continues.<\/p>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.bbc.co.uk\/news\/business-47027811\">Source<\/a> by <a href=\"\">[author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Image copyright Getty Images Image caption Roger Jenkins was executive chairman at Barclays Capital A senior banker at Barclays panicked at 02:00 at the peak of the 2008 banking crisis that, if the bank was nationalised, his bonus would be jeopardised, a court has heard. Barclays was among banks needing extra funding during the crisis. &hellip; <\/p>\n","protected":false},"author":0,"featured_media":6828,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=6827"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/6827\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/6828"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=6827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=6827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=6827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}