Barclays New Chairman McFarlane Fires CEO Anthony Jenkins due to poor performance and organizational rift

Poor bank performance and disagreements in the organization have reportedly concluded the role of Anthony Jenkins as Barclays "The Saint" CEO. Although the announcement was unexpected, it seemed to have favored the cowboy-culture company as its shares closed 2% higher.

After three years of being in charge of restructuring reforms in Barclays, CEO Anthony Jenkins was fired by the new Chairman, John McFarlane, just three months after joining the bank. Reuters reports that the unexpected decision was announced after an argument with Tom King, Barclay's investment bank head. According to insiders close to the matter, King opposes Jenkins's plans to aggressively cut assets from the investment unit resulting in a row between the two and King threatening to retire early if such plans are enforced. McFarlane intervened taking King's side which resulted in a rift in Jenkins' position. McFarlane adds that he had a discussion with Jenkins about complaints from independent directors against the CEO's leadership style.

MacFarlane had an off-site meeting with independent directors led by Michael Rake where the majority expressed the need for new leadership. The nonexecutive directors and decision makers of the company are reported to have grown impatient with the bank's restructuring progress lead by Jenkins. Barclays went through a scandal involving interest rate manipulation three years ago where its former CEO decided to step down. Jenkins was then appointed in replacement and led a clean-up and restructuring plan for the company. Unfortunately, the leadership style of Anthony Jenkins didn't sit well with some of the bank officials and investors who are more used to the rowdy culture in the organization. The Wall Street Journal add that that bank's poor performance within the leadership of Jenkins concluded the decision to cut him off.

Bloomberg reports that Barclays securities unit's return on equity dropped to 2.7 percent in 2014 compared to 8.2 percent in its previous year which makes it the least profitable unit in the bank. Its' also well below the 12 percent group target of Jenkins.

Jenkins's reform goals were resisted by most people in Barclays where executives from all levels are used to the reign of rowdy approach in conducting business. The occurring differences may have contributed to the bank's poor performance and eventually the decision to switch gears starting from seeking new leadership.