By Margot Patrick 

Barclays PLC Chief Executive Jes Staley came out on top in a showdown over the bank's strategy Thursday as shareholders voted overwhelmingly against adding the activist Edward Bramson to the board.

The result gives Mr. Staley more time to prove the British lender's strategy of combining consumer, business and investment banking is paying off after a weak first quarter for securities trading and advisory services.

Mr. Bramson conceded defeat after his firm, Sherborne Investors, which has a 5.5% Barclays stake, waged a campaign to push Barclays to reassess its strategy, particularly regarding the investment bank. After discussions with its board and executives didn't lead to any changes, Sherborne proposed adding Mr. Bramson to the board to force a rethink.

But shareholders representing about 73% of the bank's stock voted 87% against Mr. Bramson's appointment, indicating limited support beyond Sherborne's own votes.

Mr. Staley on Thursday defended the bank's strategy, saying diversification gives it strength to weather any shocks and can produce consistent returns through economic cycles.

"As a result of the choices we have made, we are now finally approaching a position to reward your patience," Mr. Staley told shareholders at the meeting. After the meeting broke up, he told The Wall Street Journal that Barclays would keep engaging with Mr. Bramson as long as he is a shareholder.

Before the meeting started, Mr. Bramson conceded defeat in comments to reporters clustered outside the room. He said that major Barclays shareholders told him they had been asked by newly appointed Chairman Nigel Higgins to hold off on any action for now and that Sherborne considered it fair to give Mr. Higgins a shot at fixing the bank.

He cautioned, however, that Sherborne would expect to see results. "Some of the numbers that we see are not encouraging," Mr. Bramson said. "So we'll wait a quarter or two and see what happens."

After more than a year of discussions with Barclays, Mr. Bramson said his next move wouldn't be to keep talking to the bank's board and executives because "nothing happens."

"We'd have to do something other than talk," the activist said. "What that is, I think it would be premature to say."

Mr. Bramson said his effort to get on the board had been positive because it triggered "a public recognition that the strategy isn't working."

He said: "The only thing we're really interested in is finally getting the value that's in Barclays released. And the current strategy hasn't done it."

Barclays's return on tangible equity, a key profitability measure, has been on an upward trajectory, but its stock price has declined about 20% in the past year.

Write to Margot Patrick at margot.patrick@wsj.com

 

(END) Dow Jones Newswires

May 02, 2019 13:54 ET (17:54 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
Barclays (LSE:BARC)
Gráfica de Acción Histórica
De Feb 2024 a Mar 2024 Haga Click aquí para más Gráficas Barclays.
Barclays (LSE:BARC)
Gráfica de Acción Histórica
De Mar 2023 a Mar 2024 Haga Click aquí para más Gráficas Barclays.