Tushar Morzaria, Barclays' new finance director from JP Morgan Chase, is an unknown in the UK but the bank has got a few things right in the appointment. First, Morzaria comes from outside – that is sensible given that chief executive Antony Jenkins was promoted from within.
Second, he's a bean-counter who knows investment banking. Again, that was logical given that Jenkins is a retail banker running a firm whose business is still dominated by investment banking. JP Morgan, of course, had its disastrous "London whale" experience but, since the unit reported directly to chief executive Jamie Dimon, Morzaria's standing didn't suffer a dent.
Third, he has no association with the bank's auditors, PwC, which was not the case with incumbent Chris Lucas.
The part that Barclays has got wrong is yet another mega-bucks pay package. Morzaria will receive an £800,000 salary, a potential bonus of £2m and long-term incentives worth up to four times salary. Add up that little lot and get up to £6m a year. Restraint? The wheels turn slowly at Barclays.
