Barclays’ Compliance Head Hector Sants Resigns

Published on

Barclays Plc (NYSE:BCS) (LON:BARC)’s chief of compliance and regulatory relations, Sir Hector Sants, has resigned due to exhaustion and stress. Last month, the former Financial Services Authority head took a sick leave after he was diagnosed with stress and exhaustion. Sir Hector Sants left the FSA in June 2012, and joined Barclays in January this year. That startled the markets as the bank was fined $450 million as part of the Libor scandal. He was also offered a position as the Bank of England’s deputy governor. Barclays said in a statement today that Mr. Sants won’t be able to return to work anytime soon.

Barclays CEO praises Sants

Sir Hector Sants had originally taken a leave until January 2014, but decided to resign after doctors told him that continuation of work will have serious consequences to his health. Barclays Plc. (NYSE:BCS) (LON:BARC) had created the role of compliance head especially for Sants. But that role required a vast amount of work, causing him exhaustion and stress.

Sir Hector Sants received his full salary while on sick leave. Industry insiders estimate his annual package at 3 million pounds. Sants led the Financial Services Authority between 2007 and 2012. At Barclays Plc (NYSE:BCS) (LON:BARC), he was reporting directly to CEO Antony Jenkins. Jenkins said Allen Meyer, who oversees compliance at the bank’s investment banking unit, will step into Sants’ shoes on an interim basis.

Antony Jenkins praised Sir Hector Sants. Though Sants was only with the bank for ten months, he made significant progress in improving Barclays Plc. (NYSE:BCS) (LON:BARC)’s compliance functions, said Jenkins.

Another Barclays executive quits

At the same time, Barclays Plc (NYSE:BCS) (LON:BARC) announced that its chief technology officer Shaygan Kheradpir will resign immediately. Kheradpir is moving to the U.S. to take up a new job at a technology company. The British bank lost two important members of its 13-member executive committee on the same day. Barclays said chief information officer Darryl West will replace Kheradpir on an interim basis.

Kheradpir joined the bank in 2011, and became chief technology officer in March 2013. Barclays Plc (NYSE:BCS) (LON:BARC) said it will start searching for internal and external candidates for both posts soon.

Barclays Plc (NYSE:BCS) (LON:BARC) shares plunged 2.27% to $15.90 at 10:17 AM EST.

Leave a Comment