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UPDATE 2-Barclays dealmaker McGee quits as U.S. head

Tue, 29th Apr 2014 17:10

* McGee doesn't want task of setting up U.S. holding company

* Exit comes after Barclays investor backlash on bonuses

* Ex-Lehman dealmaker McGee awarded $15 mln in shares lastmonth

* Joe Gold, former commodities chief, to be Americas CEO (Adds background on McGee and Gold)

By Steve Slater

LONDON, April 29 (Reuters) - Hugh 'Skip' McGee, one of theBritish bank Barclays' highest earners, has quit ashead of its Americas business, the bank saying he did not wantto oversee the task of establishing a new holding companyrequired under tougher U.S. rules.

The departure of the former Lehman Brothers dealmakercoincides with pressure on Barclays Chief Executive AntonyJenkins to cut staff pay after shareholders last week rebelledagainst a decision to increase bonuses.

Jenkins said the bonus rise was needed to prevent an exodusof U.S. investment bankers, and McGee's exit is likely to raiseconcern that some of his former Lehman colleagues will join him.

Barclays said McGee had decided to step down due to theincreased amount of time he will need to spend in the next twoyears on regulations, compliance, legal and operational issues.

The bank has to establish an intermediate holding company byJuly 2016, which imposes more stringent rules on the U.S. armsof foreign banks and will require them to hold more capital.

Joe Gold, currently head of client capital management, willtake over as the head of Barclays' Americas business from May 1.Barclays said the role had been restructured and Gold wouldreport to the co-CEOs of Barclays' corporate and investmentbanking operations, Tom King and Eric Bommensath.

Barclays hired Gold in 2001 from the failed Enron energytrading business to help lead its expansion into commodities,and he ran its European power and gas trading in London beforemoving to New York to develop its U.S. commodities business.

Jenkins said Gold understood the fast-changing regulatorylandscape and would be helped by non-executive director StephenThieke, who previously worked for the Federal Reserve Bank ofNew York, to set up the holding company.

McGee, 53, was awarded nearly 9 million pounds ($15 million)of shares last month under bonus plans from prior years, thehighest payout among the bank's executives. His full pay detailsare not disclosed.

McGee joined Barclays when it bought the U.S. arm of Lehmanwhen the investment bank collapsed in 2008 and became head ofits Americas operations in March 2013.

He said that, after 21 years at Lehman and Barclays, he waslooking forward to "my next challenge", but did not specify whatthat would be.

The Texan has spent most of his career advising investmentbank clients in the energy sector, including advising on KinderMorgan's $21 billion purchase of El Paso Corp. He also worked onVerizon's $130 billion takeover of Vodafone's stake in theirjoint venture, Verizon Wireless.

"He has been the longest-serving head of investment bankingon Wall Street, and our most senior client-facing executive,responsible for driving some of the industry's highest profiletransactions," Jenkins said.

Jenkins has pledged to cut costs and improve profitabilityin the investment bank, and will on May 8 unveil details of hisplan, which is expected to include the loss of thousands ofjobs. ($1 = 0.5950 British Pounds) (Additional reporting by Jonathan Leff in New York; Editing byKevin Liffey)

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