By Steve Slater and Sinead Cruise
Throsby joined Barclays in January 2017 to be chiefexecutive of Barclays International, which includes thecorporate and investment bank (CIB). He had been at JP Morgansince 2010 and Barclays last week awarded him shares with agross value of £9m to cover the buy-out of stock he forfeitedwhen he left the US bank.
Barclays said Throsby was also granted shares worth £3m aspart of his variable pay for 2017, most of which is deferred,and £487,500 of shares in so-called 'role-based pay' for thefirst three months of 2018. Full details of Throsby's pay,including his salary and cash bonus, are not disclosed as he isnot on the board.
Throsby is one of several former JP Morgan bankers Barclayshas hired, including chief executive Jes Staley.
Chief operating officer Paul Compton was also lured from JPMorgan, and Barclays said Compton was awarded shares worth£7.3m, including £4.8m for forfeited stock.
RETURNS PRESSURE
There is growing pressure on Staley and Throsby to improvereturns at the investment bank, and several investors said theywant to see clear progress by the end of this year. Aftertrading revenues fell in 2017, Barclays said the first twomonths of this year had been better.
"Assuming market conditions remain favourable, then we wouldreally be looking to see high single-digit returns on equity forthis business by the next year-end, or questions will need to beanswered," Steve Davies, manager of the Jupiter
CIB had a return on average allocated tangible equity ofjust 1.1% last year, down from a modest 6.1% in 2016. It is themain drag on Staley's target of getting group return on tangibleequity above 9% in 2019 and over 10% in 2020.
Another investor, who declined to be named, said he wasworried about how regulation could undermine efforts by Barclaysto win market share.
"Regulatory reform in the US could make life even tougher asUS peers are able to deploy more balance sheet into the IBbusiness as leverage restrictions are eased somewhat," theinvestor said.
Throsby plans to redeploy capital from the corporate loansbook to higher-returning opportunities in the investment bank,is encouraging staff to take more risk, and plans to ramp upinvestment in its technology and trading platforms to improveprofitability.(This story will appear in the March 17 issue of IFR Magazine)