Answer Questions -

Do you think that future whistleblowers will be less likely to report corporate wrongdoing at Barclays?

Do you think that Jes Staleys penalty is appropriate or inappropriate? Why?

How do you think Jes Staley should have behaved?

Headquartered in London, Barclays is an and the Prudential Regulation Authority investment and financial services bank with investigated Staley's behavior. They conoperations throughout the world. In Decem- cluded, in May 2018, that he failed to "act ber 2015, Barclays hired Jes Staley as CEO. with due skill, care and diligence" and fined Previously, Staley had been a 30 -year veteran him 642,000. 4 with JP Morgan in its investment banking The fine was about a fifth of Staley's total division. In June 2016, Staley hired Tim Main, compensation. In 2016, he received 2.35 a friend and former colleague at JP Morgan, as million in salary and a bonus of 1.3 million. head of Barclays' financial group in New York. Staley accepted the finding and the penalty, An anonymous person sent two letters saying, "I have consistently acknowledged to Barclays' board of directors questioning that my personal involvement in this matter the recruitment of Main. The whistleblower was inappropriate, and I have apologized for raised concerns of "a personal nature about mistakes which I have made. 5He acknowlthe senior employee, Mr. Staley's knowledge edged that the compliance office of Barclays of and role in dealing with those issues at a should have handled the matter. previous employer, and the appropriateness Meanwhile, Barclays hired the law firm of the recruitment process followed on this Simmons \& Simmons to conduct an interoccasion by Barclays." nal investigation. Based on the law firm's Staley was upset about the letters, call- report, Barclays' board concluded that Staing it harassment. "The allegations related ley had acted "honestly, but mistakenly" in to personal issues from many years ago, and his quest to identify of the whistleblower. 6 the intent of the correspondents in airing all The bank cut Staley's bonus by 500,000. of this was, in my view, to maliciously smear Barclays did not fire Staley even though this person." 2 Staley wanted to know the let- CEO censure from banking regulators is ter writer's identity, so he twice asked Bar- highly unusual. The Institute of Directors clays' internal security team to track down said it was disappointed "that Barclays had the whistleblower. On the second occasion, breached its own rules on protecting whisthe security team obtained help from a U.S. tleblowers." John Mann, a Labour memlaw enforcement agency, to no avail. They ber of Parliament, went further, calling for failed to identify the whistleblower. Staley's resignation. Jonty Bloom, a BBC As a result of the 2008 financial crisis, business correspondent, said that Staley got the U.K. government enhanced public over- off lightly. "As chief executive of Barclays, sight of the banking industry by enacting Mr. Staley should have been setting an the Senior Managers Regime (SMR) aimed example of how to deal with whistleblowat making senior executives in the financial ing. Instead... he set the bank's own interservices industry more accountable. 3 Under nal investigators unit to work to discover the SMR, the Financial Conduct Authority the identity of the whistleblower