Tom Kalaris, chief executive of Barclays Wealth and Investment Management, has decided to retire from the firm at the end of June this year, while investment bank chief Rich Ricci is also leaving in a boardroom restructure.
Kalaris (pictured), who joined the bank in September 1996, will work with Peter Horrell, the firm’s head of intermediaries, international and direct businesses, on the transition to the new regime. He is also executive chairman of Barclays in the Americas and will step down from his role on the Barclays executive committee at the end of April.
Meanwhile Ricci will leave the firm at the end of June and will also step down from the bank’s executive committee at the end of April.
Prior to leaving, Ricci will continue helping the establishment of the firm’s new leadership team, which follows on from Barclays’ strategic review at the start of the year designed to help the bank restore its reputation.
The review has led to a raft of changes to the senior management team in a move to streamline the leadership across three divisions. These include corporate and investment banking, wealth and investment management and the Barclays business in the Americas.
In other Barclays changes announced on the London Stock Exchange, Eric Bommensath and Tom King have been appointed co-chief executives of the corporate and investment banking arm, with effect from 1 May. They will retain their current roles as head of markets and head of the investment banking division.
On the Wealth and Investment side, Barclays is building out its wealth platform and is working more closely with the retail and investment banking division, to position for future growth.
Peter Horrell will lead the work on implementing this project and has been appointed interim chief executive of wealth and investment management, with effect from 1 May, reporting to Anthony Jenkins, the group chief executive.
The 'Go-To bank'
Commenting on the changes Jenkins told the market: 'Since I became group chief executive, a major area of focus for me has been to streamline and improve how the bank is managed, while strengthening control.
'Today's changes are the next step in that journey, and they will ensure we have the right senior team in place to deliver the strategy and commitments we made on 12 February, and build the "Go-To" bank.'
Jenkins reiterated he wanted to de-layer the organisation by creating a 'closer day-to-day relationship and clearer line of sight for myself into the business', in which its business activity will be organised into more client-focused product sets.
'In Tom and Eric we have two superb leaders for CIB, and I am looking forward to working with them to build the 'Go-To' investment bank from our already world-leading position.'
'Out of control'
The reshuffle comes at a controversial period for Barclays' wealth division.
At the start of the year its chief operating officer Andrew Tinney left the firm after it emerged he had binned a report exposing the cultural flaws within the business.
The report was compiled by consultancy Genesis Ventures after regulators questioned irregularities within the division. It said it was concerned by the number of ‘disenchanted managers’ and concluded the business was 'out of control'.
Jenkins is understood to have warned staff at the time to improve their ethical code or pack their bags following the news, while Kalaris' role was also said to be being investigated, although this was never confirmed.
The business was also left with egg on its face last week on reports an analyst was caught threatening to 'steal' ideas from online discretionary firm Nutmeg.
In today's statement Jenkins said with Barclays push to become one of the world's most recognised names in wealth management -codenamed Gamma - drawing to a close it was time for change.
'In Wealth & Investment Management we have largely completed the Gamma programme which saw us build out our platform markedly. Now is the appropriate time to determine how we maximise the business' potential in the next phase of its development,' Jenkins said.
'As a result of this, Tom Kalaris will also retire from Barclays on 30 June. Tom has made a huge contribution to the bank in a variety of senior roles over the past 16 years....we thank Tom for all he has done for Barclays and wish him every happiness in retirement.'