Barclays 2014 Annual Report Download - page 61

barclays.com/annualreport Barclays PLC Annual Report 2014 I 59
Late October 2013
The Board agreed that Sir John
Sunderland would lead the process
to identify a successor, with oversight
by the Committee
1 January 2015
John McFarlane took up his
appointment as non-executive Director
Mid December 2013
Required attributes identified and
Spencer Stuart appointed to assist
with the search
Late February 2014
Following analysis, shortlisted
candidates were identified and
approached by Spencer Stuart to
gauge interest in the role
August 2014
John McFarlane confirmed his
interest in the role subject to
regulatory approval and
satisfactory succession
arrangements for his existing roles
Late August –
Mid September 2014
Engagement with FCA and PRA
regarding the appointment and our
application for approved person
status. John McFarlane was
interviewed by the PRA and FCA
and his appointment was approved
Mid September 2014
Sir John Sunderland and the
Company Secretary engaged with
key shareholders to brief them on
the appointment
2015
2014
2013
Early January 2014
Timeline agreed and a lengthy
first list of potential candidates
from around the globe examined
and reduced by end-January
March – July 2014
Sir John Sunderland and
sub-committee members held
a series of discussions with
potential candidates
Late August –
Early September 2014
The Board met and authorised
the Committee to approve the
final appointment subject to
certain conditions being met,
regulatory approval and
shareholder engagement.
The Committee and the Board
Remuneration Committee
respectively approved the
appointment and the terms
of engagement
Mid September 2014
Barclays announced John
McFarlane ’s appointment as a
non-executive Director with
effect from 1 January 2015 and
as Chairman elect
Late August 2014
John McFarlane met with all
Board Members
Governance in action: the appointment of
John McFarlane
At the time of his appointment in November 2012, Sir David Walker
stated his intention to serve as Chairman for three years, with an
anticipated retirement date in 2015. Accordingly, in October 2013
the Committee invited me to lead the Chairman succession process
and constituted a sub-committee to assess potential candidates.
The sub-committee comprised Mike Ashley, Tim Breedon, Reuben
Jeffery and me as Chairman.
We drew up a candidate specification, reflecting the role profile set
out in our Charter of Expectations and the chief qualities we were
looking for in a candidate. These included:
Q The ability to lead the Board and engender the respect of the
non-executive Directors and Chief Executive Officer;
Q Experience and a good understanding of the role of the Chairman
in a global enterprise;
Q In-depth knowledge of the financial services sector and
investment banking in particular;
Q Integrity, a strong commitment to excellent corporate governance
and appreciation of the issues faced by Barclays; and
Q The ability to liaise with and secure the trust of our shareholders
and other stakeholders.
Spencer Stuart, an external search consultant, was engaged to
assist with the selection process and conducted a global search to
identify suitable, qualified candidates. They identified a number of
candidates across the UK, Continental Europe, North America,
Australia and South Africa for initial assessment.
The sub-committee consulted with its advisors throughout the
process. Sir David Walker, as the incumbent Chairman, did not take
part in the selection process, but was consulted for his views and
insights into the role. I updated other Board members on progress
throughout the process.
The initial candidate list was reduced to a shortlist for consideration
by the sub-committee. As John McFarlane emerged as the preferred
candidate, we undertook a number of stakeholder engagements:
Q All Board members met with John McFarlane and had the
opportunity to provide feedback;
Q We kept our regulators fully updated and, in common with other
Board appointments, obtained prior regulatory approval for John
McFarlane’s appointment; and
Q We held discussions with a number of major investors who
responded positively on the proposed appointment.
In addition to regular communication with Directors individually, the
Board met twice specifically to discuss the proposed appointment
and to allow Directors to share their feedback on John McFarlane
before approving his appointment, which was announced in
September 2014. Given the time commitment required of the
Barclays Chairman, we are grateful to Aviva plc and FirstGroup plc
for agreeing to release John McFarlane to take on this important
role: he will step down from these boards in April 2015 and
July 2015, respectively.
The role of Barclays Chairman is a challenging one and I am pleased
that in John McFarlane we identified someone who met all of the
criteria we had set. He is an enormously experienced and respected
banker, with global experience of both retail and investment banking
who will bring great leadership, integrity and knowledge to the role.
Sir John Sunderland
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