Newspaper article The Evening Standard (London, England)

Barclays' Rake Prepares to Take the Chairman's Role; HEADS BEGIN TO ROLL IN LIBOR SCANDAL AS BOB DIAMOND FIGHTS TO SAVE HIS CAREER

Newspaper article The Evening Standard (London, England)

Barclays' Rake Prepares to Take the Chairman's Role; HEADS BEGIN TO ROLL IN LIBOR SCANDAL AS BOB DIAMOND FIGHTS TO SAVE HIS CAREER

Article excerpt

Byline: Nick Goodway

SIR Mike Rake was today promoted to deputy chairman of Barclays and installed as the firm favourite to replace Marcus Agius who resigned as chairman of the bank last night.

Rake, currently chairman of telecoms giant BT and low-cost airline easyJet, is expected to give up both these roles if he is chosen to head Barclays.

The appointment of a new chairman to succeed Agius who resigned over the [pounds sterling]290 million Libor-fixing scandal, will be headed by Barclays' non-executive director Sir John Sunderland, former boss of Cadbury Schweppes.

The fact that he has been picked to head the hunt rather than Rake, who was the senior independent director, indicates that the BT chairman is already the frontrunner.

Rake is also seen as the safest pair of hands with his background as the former senior partner and chairman of accountancy giant KPMG.

The appointment of any new chairman to Barclays will have to be approved by the Financial Services Authority, but Rake ticks all the boxes.

Agius was paid [pounds sterling]750,000 a year by Barclays for what was nominally a three day a week job. He could receive a full year's pay-off.

Rake is paid [pounds sterling]672,000 a year by BT for roughly two days a week and has held the post for five years.

BT said it would not comment on Rake's future, adding: "It's all speculation at the moment and it's a matter for Barclays to decide."

BT does not have a deputy chairman and its senior independent director is former Labour Cabinet Minister Patricia Hewitt who is unlikely to be made chairman.

An easyJet spokesman said: "It's business as usual at easyJet. Mike is supported by a high-calibre board which has recently been refreshed, and an experienced deputy chairman in Charles Gurassa."

But its largest shareholder and founder, Sir Stelios Haji-Ioannou, said: "I would suggest these unfortunate events at Barclays offer him the perfect opportunity to stand down from the easyJet chair so we can appoint someone who will be able to devote more time for the protection of our company and the easy brand. …

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