Shareholder revolt convinces bank candidate to withdraw
Barclays appointmentBarclays has decided to search outside the bank for its next chairman after a shareholder revolt against the proposed appointment of board member Sir Michael Rake persuaded the BT chairman to withdraw his candidacy.
Several leading investors had made it clear to the bank that while they had nothing against Sir Michael per se, they were determined that Barclays’ next chairman should be an outsider, untarnished by associations with the Libor scandal or other affairs that have brought the bank into conflict with regulators.
Although there is no evidence that the board or Sir Michael – a non-executive on the board since 2008 and recently elevated to deputy chairman – had known of the affair, at least three top 10 investors made clear they wanted a fresh start for the role. Sir Michael has also been head of the audit committee, signing off on some of the accounting practices that brought Barclays into conflict with regulators and the government. The bank is not expected to find a new chairman or chief executive at least until the autumn. – Copyright The Financial Times Limited 2012