Barclays has embarked on a radical executive and organisational shake-up, with Tim Throsby, the boss of the investment banking division, quitting the lender as it battles an activist investor.
Mr Throsby was drafted in two years ago from JP Morgan to run the corporate and investment bank, and he will depart amid an overhaul of the division.
It will see the unit split into three – global banking, global markets and corporate banking – each with its own head reporting directly to chief executive Jes Staley.
The bank boss said on Wednesday that the corporate and investment bank is “not yet where we need it to be” and needs to show higher returns.
He said: “I believe we need a more granular execution focus on the businesses within the corporate and investment bank if we are to drive those returns, in a reasonable time frame, towards and above that cost of capital.
“And so I have decided to change the leadership model for that business, delayering the organisation in order to bring oversight and accountability for the performance of the corporate and investment bank much closer to me as the group CEO.”
The move comes amid a tussle with activist investor Edward Bramson who, through his investment vehicle Sherborne, holds a 5.5% stake in Barclays.
As well as calling for a board seat, Mr Bramson has called for Barclays to curtail its investment banking arm.
Mr Staley and outgoing chairman John McFarlane have rejected his vision, saying the activist’s interests are “not aligned” with those of the bank or of long-term shareholders.
Commenting on Mr Throsby’s decision to leave Barclays, Mr Staley said: “Tim joined Barclays in January of 2017, and over the past two years has made a significant contribution to the progress of Barclays international, particularly in the corporate and investment bank, but also in the development of our international consumer businesses.
“We wish him well for the future.”
Mr Staley will also become head of the legal group that houses the investment bank and the non-UK business, with chief operating officer Paul Compton promoted to president to aid him.
Among the host of other changes announced, Joe McGrath will become global head of banking and Stephen Dainton will act as interim global head of markets while Barclays conducts a search for a permanent appointee.
Alistair Currie will become head of corporate banking and Ashok Vaswani will take on a newly created role within the group as head of consumer banking and payments.