More muscle needed at Barclays

BARCLAYS is coming under pressure to strengthen its board with some heavyweight non-executive directors as the price of approval for its controversial succession plan.

Institutional shareholders are expected to demand a better balance to the board, which some are calling too cosy.

They want an explanation for the bank's decision last week to elevate chief executive Matt Barrett - who yesterday told a Commons Select Committee that Barclaycard was too expensive for borrowing - to the chairmanship in defiance of boardroom guidelines.

So far, Barclays has declined to put in writing any explanation for the breach, despite the 'comply or explain' code.

The disappointed chief of one major institution dismissed as nonsense the bank's claim that it had not breached the rules because they were not yet strictly in force.

He said too much power was vested in Barrett, who not only steps up to the chairmanship but brings four of his underlings on to the board for the first time.

The non-executive ranks need beefing up, he said. Sir Nigel Rudd, one of the few heavyweights on board, is already under fire for having too many other duties, including chairmanships at Boots, Pilkington and Pendragon.

Sir Brian Jenkins, 67, has been on the board of Woolwich then Barclays, almost 10 years, which compromises his perceived independence.

Hilary Cropper has just quit her main job at Xansa to battle ovarian cancer. Steve Russell does not inspire great confidence after his ousting from the chief executive post at Boots.