JPM JP Morgan Chase and Co

By Simon Clark

LONDON--Barclays PLC Chief Executive Jes Staley should leave because his professional relationship with the late financier and convicted sex offender Jeffrey Epstein makes him unsuitable for the job, according to an activist investor with a large stake in the British bank.

U.K. regulators are investigating disclosures about the professional relationship between Mr. Staley and Mr. Epstein, who died in prison last year. The Barclays boss's interactions with Mr. Epstein date back to at least 2000, when Mr. Staley led JPMorgan Chase & Co.'s private bank and Mr. Epstein was a client. Mr. Staley has said there was no interaction between them after he became Barclays CEO in December 2015.

Sherborne said in the statement that the board of Barclays should reverse its decision to recommend Mr. Staley for re-election at the next annual meeting. Sherborne owns more than 5% of Barclays shares. Sherborne said in the statement that it's now the largest shareholder in Barclays.

"We request and strongly recommend that the bank's chairman, Nigel Higgins, and the board as a whole rescind their unanimous recommendation to re-elect Staley," Sherborne said. "We believe that it would be in everyone's interest to draw a line under this destabilizing situation, which has become a circus, as soon as possible. This would allow the company to move forward and focus on more constructive activities."

A Barclays spokesman didn't immediately respond to a request for comment.

Write to Simon Clark at simon.clark@wsj.com

(END) Dow Jones Newswires

March 02, 2020 04:00 ET (09:00 GMT)

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