Barclays’ chief executive, Antony Jenkins, yesterday hired a Wall Street investment banker as his right-hand man and agreed to put him on a pay and pension package potentially worth more than £6m a year.
Tushar Morzaria, a Ugandan who came with his family to the UK in 1971 when he was a boy, will replace Chris Lucas as finance director in a move that sees the last of the Barclays old guard replaced in the boardroom.
The 44-year-old will be on a salary of £800,000 with a potential 250 per cent bonus of £2m. On top of that, he will go into the Barclays long-term incentive plan scheme which can pay up to four times’ salary. However, Barclays may end up paying him millions more, as it has pledged to recompense him for any deferred bonuses he accrued in his time at JPMorgan, where he is chief financial officer of corporate and investment banking.
He will also get a relocation allowance to move his wife and two daughters to London from New York.
Analysts noted that Barclays, which has most strongly argued for the Government not to break it up into a separate retail and investment bank, will have a chief executive from retail and a finance director from investment banking.
Mr Jenkins has repeatedly declared his intentions to clean up the corporate culture at Barclays after it has played centre stage in a host of scandals, particularly the Libor-rigging affair.
A spokesman for Barclays said Mr Morzaria “fits very much with the chief executive’s worldview”.
JPMorgan suffered a blow to its reputation from the London Whale trading scandal, when Bruno Iksil’s department ran up losses of $6.2bn (£4.1bn) for the bank last year. But Mr Morzaria did not work in his division, and overall, JPMorgan has been praised for having had a “good war” during the financial crisis.
Mr Morzaria is a British citizen and is thought to be one of the many Ugandan Asians whose families fled Idi Amin in the early 1970s. He arrives at Barclays when the bank is trying to bolster its standing in the eyes of regulators in Britain and the US.
Mr Lucas, who had announced his intention to retire, will be the last of the board which oversaw the Libor and other scandals of recent years. He turned down his bonus for last year due to the Libor affair, which resulted in a £290m fine for the bank, although he is eligible for a bonus this year.
He is one of four executives who are the subject of an investigation into payments to Qatar Holding during negotiations over the Emirati sovereign wealth fund’s £5.3bn investment in Barclays in 2008.
Mr Jenkins said of Mr Morzaria: “He will bring a welcome new perspective to what is a pivotal role.”
Mr Morzaria will begin working at Barclays in the autumn, taking over the reins from Mr Lucas in February next year after a handover period.