Barclays, Britain's second-largest bank by assets, hired Tushar Morzaria from JPMorgan Chase to replace Chris Lucas as chief financial officer.
Morzaria, CFO of corporate and investment banking at New York-based JPMorgan, will join Barclays in the autumn before Lucas retires on Feb. 28, the London-based bank said in a statement today. JPMorgan said in a memorandum to employees it will name a successor to Morzaria, 44, in coming days.
"It's a good choice," said Chirantan Barua, an analyst at Bernstein Research in London with an outperform rating on Barclays. His "investment banking background helps because that's the one we want to invest in Barclays for, and that's the area which comes under risk every time from politicians."
Lucas, 52, is the last of former Chief Executive Officer Robert Diamond's senior executives to depart following the lender's 290 million-pound ($438 million) fine for rigging benchmark interest rates last year. Antony Jenkins, who took over as CEO in the wake of the Libor fine, is trying to cut costs and rebuild regulators' confidence in the company.
The stock rose 0.6 percent to 311.55 pence as 12:04 p.m. in London trading for a market value of 40 billion pounds. The shares are up almost 19 percent this year, making it the second best-performing bank stock this year after Lloyds Banking Group Plc.
Morzaria's annual salary will be 800,000 pounds ($1.2 million) and his bonus will be as much as 2 million pounds. His long-term incentive award will be as much as 3.2 million pounds, Barclays said.
Morzaria, a British citizen, joined JPMorgan in 1995 and held positions including head of valuation controls group through 2002. After a stint at Credit Suisse Group AG, he re- joined JPMorgan in 2005 as the CFO of the investment bank for Europe. He had also been CFO of the investment bank, according to an internal memo obtained by Bloomberg News today.
"He will bring a welcome new perspective to what is a pivotal role," Jenkins, 52, said in the statement.
Lucas was one of four past and present employees being probed by regulators over whether Barclays adequately disclosed fees paid to the Qatar Investment Authority when it raised money from the Gulf during the financial crisis, a move that helped the lender avoid taking government money.
Diamond, Chairman Marcus Agius and Chief Operating Officer Jerry Del Missier all stepped down in the wake of the Libor fine. The bank said in February Lucas and General Counsel Mark Harding would step down. Two months later, investment-banking chief Rich Ricci and wealth-management head Tom Kalaris said they would also depart.
An internal report in April criticized pay at the investment bank and urged the company to boost transparency. Former Financial Services Authority Chairman Adair Turner told lawmakers last year that Barclays "had a cultural tendency to be always pushing the limit" of what was allowed under banking rules.
Jenkins's appointments include Shaygan Kheradpir as chief operations and technology officer, responsible for helping the lender automate more systems to cut costs, and former Financial Services Authority Chief Executive Officer Hector Sants as head of compliance and government and regulatory relations. Sants's job includes Del Missier's former responsibility for managing regulatory changes.
