FCA investigates Barclays CEO over whistleblowing case

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Barclays is docking pay for chief executive Jes Staley after he broke regulations by trying to identify an internal whistleblower.

The lender has given Staley a formal reprimand and a “very significant” hit to his compensation, according to the Financial Times.

The FCA and the Prudential Regulation Authority are also investigating Staley and his employer after he tried to find out the author of a 2016 whistleblowing letter.

The letter to the Barclays board raised concerns about a senior employee at the lender and Staley’s part in their recruitment.

Staley twice asked Barclays’ information security team to identify the author. The first time he was turned down, and the second time the team tried but failed to find the author.

The Barclays board flagged the molehunt up to the regulators when it found out.

A review of the issue by law firm Simmons & Simmons found Staley “honestly, but mistakenly, believed that it was permissible to identify the author of the letter”.

According to Simmons & Simmons’ investigation, Staley thought the letters were an “unfair personal attack”.

Barclays chairman John McFarlane says Staley “continues to have the board’s unanimous confidence”.

McFarlane adds the Barclays board will recommend Staley be reappointed as chief executive at the bank’s May annual general meeting.

The level of pay Staley will lose will be set after the outcome of the regulatory investigations.