Does Barclays have a successor CEO?

5 min read

Does Antony Jenkins, Barclays CEO, have a credible successor in incoming group COO Jonathan Moulds? Maybe it’s a stretch to make so bold before he’s even started – particularly as he hails from the rates derivatives trading world, which still has the power to terrify – but I wonder nonetheless.

The CBE Moulds received in the Queen’s New Year’s honours list, his long association with philanthropic pursuits, his support for young musicians, and the fact he is British and from the north of England – yes that makes a difference – will soften any caricature that might emerge in the minds of politicians, the media and the populace at large.

Moulds is effectively coming in as Jenkins’ deputy and unlike most of the rest of the executive committee, he has industry stature and renown not just as a result of his close to 25 years in investment banking but also through his association with industry trade bodies AFME and particularly ISDA where he joined the board in 1998 and served as chairman for three and a half years from 2004.

Not to make direct comparisons here, but Moulds emerges as a much more rounded character than the likes of Bob Diamond, who was seen (albeit unfairly) as a one-dimensional all-round Pantomime bad guy.

With new Barclays chairman John McFarlane coming in soon to replace outgoing David Walker, I’ve got to say Barclays’ upper ranks look a lot more robust – and balanced. While Moulds has a group-wide role, his deep knowledge of investment banking will play well against Jenkins’ retail and corporate banking background. And given how central the transformation of Barclays’ leading FICC business is to where the group is headed with its Transform programme, Moulds will be well placed to offer counsel to Jenkins and the board on this key aspect. He will also complement Tom King, CEO of the corporate and investment bank, whose background is in M&A.

ExCom and external hires

Beyond the skills, knowledge and experience that Moulds brings to the table, Jenkins’ relatively new ExCom is a little thin. Of the 11 people sitting on ExCom including Jenkins, three run the business lines (Ashok Vaswani, personal and corporate banking; Tom King, corporate and investment bank; Valerie Soranno Keating, Barclaycard); six run the central and support functions while Maria Ramos runs Africa. None of them looks like they would make an inspiring choice as next group CEO.

(As an aside, I doubt King will ever get a shot at the corner office. Barclays recently tried an experiment with an American investment banker at the helm; the board won’t be tempted to try again …)

The very fact that the board hired an outsider tells its own story: it’s certainly unusual these days for a major bank to make an external hire at such a senior level; most such jobs are filled internally; the exception perhaps being the CFO slot. Moulds’ conversations with Jenkins and board members started relatively recently and support for his hiring emerged quickly while FCA/PRA clearance was turned around on an accelerated schedule.

Having been out of the market for some three years, he is champing at the bit to get back into the industry. None of the ExCom members will initially report to him; Jenkins wanted to bring him in without causing too much internal angst and anxiety. But assuming it all works out and he gets his feet properly under the desk, I would imagine he will start picking up direct responsibility for some ExCom functions. One of his first duties when he starts in early February will to set up and chair an operating committee.

Mind you, before he starts to build his internal profile, Moulds will have a lot on his plate and the road to success is likely to be heavily land-mined. For a start, he’s picking up the strands of the Transform programme; he will also be given the not-insignificant task executing the retail ring-fence in the UK. And establishing the intermediate holding company in the US – yes that very task that sent Skip McGee running for the hills in horror last May. He’ll also oversee strategy and corporate development.

Actually, the more I think about it: are you sure you want the job, Jonathan?

Keith Mullin