Barclays Adds Prominent Investment Executives to Board -- 2nd Update
By Caitlin Ostroff
LONDON -- Barclays PLC added two prominent names from the
investment world to its board at a time when the bank is buffeted
by Brexit, a depressed stock price and the agitations of an
Mohamed El-Erian, one of the best-known names in global fund
management, is set to join Barclays as a nonexecutive director. Mr.
El-Erian served as chief executive of bond giant Pacific Investment
Management Co. until 2014. He left after he clashed with Pimco's
top bond manager at the time, Bill Gross.
Also joining is Dawn Fitzpatrick, the chief investment officer
of Soros Fund Management LLC. Ms. Fitzpatrick manages the personal
fortune of George Soros, plus the billions of dollars he has
donated to his philanthropic arm, the Open Society Foundations.
The two new names join Barclays board at a challenging time for
the U.K. lender. It cut 3,000 jobs in the second quarter and is
planning to clamp down further on costs. Chief Executive Jes Staley
has been trying to convince investors that the bank's mix of a big
retail bank in the U.K., combined with a U.S.-and European-focused
investment bank, can produce stable returns and provide resilience
in a downturn. A drop in U.K. business investment caused by
uncertainty over the U.K.'s withdrawal from the European Union has
hung over the bank.
The company's share price has nearly halved since a 2015 peak.
New York-based activist firm Sherborne Investors took a more than
5% stake last year and has agitated for a board seat and a
restructuring of the company's investment banking business.
Barclays is seen to have a strong U.K. domestic bank, catering to
retail and business customers. Its investment bank, however, has
struggled against much larger rivals such as JPMorgan Chase &
Co. and Goldman Sachs Group Inc.
Mr. El-Erian previously was a deputy director at the
International Monetary Fund and ran Harvard University's endowment
fund, the largest in the education world. He currently serves as
chief economic adviser at German financial giant Allianz SE, the
corporate parent of Pimco.
Ms. Fitzpatrick joined the board Wednesday. Mr. El-Erian will
join Jan. 1, 2020.
Write to Caitlin Ostroff at firstname.lastname@example.org
(END) Dow Jones Newswires
September 26, 2019 07:42 ET (11:42 GMT)
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