The bonanza includes a £2.4m “golden goodbye”, nearly £11m in bonuses and a £15m pot of shares, which Jenkins amassed during a nine-year stint at the lender. He was elevated from heading Barclays’ retail bank in 2012 in the wake of the Libor rate-rigging scandal, reports The Times.
His payoff is likely to stir the debate over generous farewell packages for deposed FTSE 100 chiefs. Dalton Philips left the struggling grocer Morrisons with a £4m payout earlier this year, while Richard Glynn of Ladbrokes received £3.6m after a chequered reign.
Jenkins, called “Saint Antony” in banking circles, was given a mandate to restore Barclays’ battered reputation when he replaced the controversial Wall Street banker Bob Diamond. However, the Barclays board, headed by chairman John McFarlane, last week decided that Jenkins had not boosted profits rapidly enough, particularly in its investment banking division.
McFarlane, who helped to restore the fortunes of the insurer Aviva, will run the lender until a new chief executive is hired. His main aim is to boost the bank’s dismal returns: its profit margin was just 3% last year, about half that of domestic rivals such as Lloyds. He will give details of his overhaul later this month with the bank’s full-year results.
Jenkins, who celebrated his 54th birthday yesterday, was lambasted by investors in 2013 after increasing the bonus pool at the investment bank despite a slide in profits. He said the pay rises were necessary to prevent a “death spiral” of staff defections. Even though returns remain lacklustre, Jenkins has been deemed a “good leaver”. This means he is eligible for a raft of payoffs and perks, and will remain in the executive bonus plan during his 12-month notice period. His £2.4m cash payoff will comprise a £1.1m base salary, £950,000 allowance and £363,000 pension payment.
Jenkins could earn a £1m bonus based on performance during the first half of this year. Provided Barclays hits performance targets in coming years, he could pocket a further £9.8m from the long-term bonus scheme. He also holds £14.8m in Barclays shares.
Diamond received a £2m “golden goodbye” but gave up the right to stock-based bonuses worth as much as £20m when he was ousted.
For many years one of London’s best-paid bankers, regularly pulling in £20m a year, Diamond transformed Barclays’ investment bank from an also-ran into a serious force. In 2008 he bought the American arm of Lehman Brothers out of administration.
Jenkins had aimed to cut the division down to size, but last week McFarlane came out in support of the Wall Street operation, which is thought to remain highly lucrative. He is expected to slash the bonus pool until overall returns at the investment bank improve.