# Shareholder group ISS backs Barclays board over former CEO Staley Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-17 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Barclays Board Backed by ISS Over Former CEO Staley Meta Description: Influential proxy advisor ISS supports re-election of Barclays board amidst probes into former CEO Jes Staley's ties with sex trafficker Jeffrey Epstein. URL: https://financedigest.com/shareholder-group-iss-backs-barclays-board-over-former-ceo-staleyhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-04-17t083524z4lynxmpej3g04xrtroptp4barclays-discrimination-1736814138149-compressed.jpg) # Shareholder group ISS backs Barclays board over former CEO Staley By Sinead Cruise LONDON (Reuters) -Institutional Shareholder Services (ISS) has recommended Barclays investors re-elect all board members at next month’s annual meeting, sapping the momentum of protests against bosses for supporting former CEO Jes Staley who is being investigated over his links with sex trafficker Jeffrey Epstein. The influential proxy advisor said in a report published on Monday that “questions may be posed” as to the board’s judgment in its decision to back Staley between 2019-2021, but it may be too soon for those questions to influence director elections. [Investors should instead await](https://www.financedigest.com/oil-steadies-after-dipping-on-china-outlook-investors-await-fed-clues.html "Oil steadies after dipping on China outlook; investors await Fed clues") the outcome of various investigations into the matter, ISS said. In a pre-meeting notice to investors [last month](https://www.financedigest.com/fintech-trends-to-look-out-for-during-the-last-six-months-of-2019.html "Fintech trends to look out for during the last six months of 2019"), Barclays said that since Staley resigned in November 2021 it had received “no material new evidence” from authorities to challenge the findings of a regulatory investigation into how Staley characterised his relationship with Epstein. At the time of his resignation, Barclays said the preliminary conclusions of [investigations by British financial regulators](https://www.financedigest.com/australia-financial-crimes-regulator-opens-investigation-into-britains-entain.html "Australia financial crimes regulator opens investigation into Britain’s Entain") into how truthful Staley was about his ties to Epstein made “no findings that Mr Staley saw, or was aware of, any of Mr. Epstein’s alleged crimes.” Staley has acknowledged having been friendly with Epstein, but expressed regret for their relationship and has denied [knowing about the financier’s](https://www.financedigest.com/financial-records-retention-what-do-businesses-need-to-know.html "Financial records retention: what do businesses need to know?") criminal activities. The notice also said Staley’s unvested long-term bonuses remained suspended pending further developments, adding that the board would “consider further action as appropriate”. Staley, who joined Barclays in 2015 after more than 30 years at JPMorgan, has been named in two civil lawsuits lodged against the U.S. [bank for enabling](https://www.financedigest.com/token-enables-bank-direct-payments-for-caxton-fx-consumer-and-business-customers.html "Token Enables Bank Direct Payments for Caxton FX Consumer and Business Customers") and concealing Epstein’s network. JPMorgan, in turn, has sued Staley over “outrageous” alleged conduct and breaching his duty of [loyalty to the bank](https://www.financedigest.com/loyalty-subscription-services-and-the-importance-of-customer-preferences-in-modern-banking.html "Loyalty, Subscription services and the importance of customer preferences in modern banking"). Staley’s lawyers have dismissed [allegations that he hid what he knew about the late disgraced financier as “slanderous” and “false”](https://www.financedigest.com/philips-subsidiary-to-pay-over-24-million-for-alleged-false-claims-for-medical-equipment.html "Philips subsidiary to pay over million for alleged false claims for medical equipment"). ## EXECUTIVE PAY Separately, ISS also said there may be “some scope” for further [cuts to executive bonuses following a massive regulatory breach which led to the unlawful sale](https://www.financedigest.com/sap-to-cut-3000-jobs-explore-qualtrics-stake-sale.html "SAP to cut 3,000 jobs, explore Qualtrics stake sale") of $17.7 billion of structured products in the United States. It did, however, describe actions already [taken to dock variable pay](https://www.financedigest.com/half-brits-taken-pay-cut-job-made-happier-according-wrike-survey.html "Over half of Brits have taken a pay cut for a job that made them happier, according to Wrike survey") earned by incumbent and former executives as “substantial” and “well explained”, and therefore worthy of “qualified support” from investors. Rival advisor Glass Lewis on April 6 [recommended shareholders vote](https://www.financedigest.com/hsbc-board-recommends-shareholders-vote-against-spin-off-resolution.html "HSBC board recommends shareholders vote against spin-off resolution") against bosses’ pay in protest against long-term bonuses awarded to former executive Tushar Morzaria, who was serving as chief financial officer when the securities were sold in error. Barclays docked bonuses earned by Morzaria and its current top executives by a combined 1 [million pounds](https://www.financedigest.com/britain-announces-205-million-pound-auction-for-renewable-power-projects.html "Britain announces 205 million pound auction for renewable power projects") ($1.24 million) in February over the blunder. Barclays paid a $200 [million fine](https://www.financedigest.com/ireland-fines-instagram-a-record-400-million-over-childrens-data.html "Ireland fines Instagram a record 0 million over children’s data") to U.S. regulators last year for “staggering” failures over several [years that contributed to the breach and also forced the restatement of 2021 financial](https://www.financedigest.com/what-financial-institutions-will-be-like-in-10-years.html "What Financial Institutions Will Be Like In 10 Years") accounts. ($1 = 0.8061 pounds) (Reporting by Sinead Cruise, editing by Lawrence White and Susan Fenton) --- This blog is powered by Superblog. 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