* Barclays grabs finance director of JP Morgan investmentbank
* Morzaria could earn 6 mln stg in annual pay, bonus, awards
* JP Morgan says to announce replacement in coming days
* U.S. bank praises "analytical ability...steady demeanour"
By Steve Slater
LONDON, July 16 (Reuters) - Barclays has poached JPMorgan executive Tushar Morzaria to become its newfinance director, offering him up to 6 million pounds ($9.1million) in annual pay and awards to help the bank recover froma series of scandals.
Morzaria faces a challenging job. Barclays has pledged toimprove relations with regulators and raise standards at thebank, shortcomings exposed when it was fined $450 million inJune 2012 for rigging the Libor global benchmark interest rate.
Its capital strength is also under scrutiny. It is in talkswith the Bank of England over how to reduce leverage after beingwarned last month it had to do so. Barclays said that couldforce it to cut lending to British households and firms, but thecentral bank said it would not allow that.
Morzaria is chief financial officer of corporate andinvestment banking (CIB) at JP Morgan Chase, where he has spentmost of his career.
JP Morgan praised Morzaria's "analytical ability, combinedwith his calm, steady demeanour" and said it would appoint hissuccessor in the coming days.
The move ends Barclays' lengthy search for a financedirector, after it said in February that Chris Lucas would stepdown after six years in the role.
Morzaria, 44, will be paid a salary of 800,000 pounds andcan earn an annual bonus of up to 2 million pounds and along-term share award of up to 3.2 million. The long-term awardwould only start paying out in five years' time.
He is expected to begin work at Barclays this autumn butthere will be a lengthy handover period. He will join the boardat the start of next year and take over as finance director whenLucas retires at the end of February.
He was born in Uganda and moved to Britain in 1971. TheBritish citizen - who graduated in computer science andaccounting from Manchester University and lists running andcycling as his interests - is a qualified chartered accountant.
CULTURE CHANGE
His bosses at JP Morgan said in a memo to staff seen byReuters that Morzaria had been "an exceptional partner" who hadbeen instrumental in the bank's alignment of its commercial andinvestment banking arms, particularly around managing expenses,capital and liquidity.
He worked at JP Morgan from 1995 to 2002 and after threeyears at Credit Suisse he rejoined the U.S. bank andbecame CFO of its investment bank in 2010. Before JP Morgan heworked at SG Warburg and Coopers & Lybrand Deloitte.
Lucas has been finance director for a tough six years andlast year was particularly difficult. He is one of four currentand former employees being investigated by UK authoritiesregarding a capital injection by Qatar in 2008.
The bank has also been accused in recent years of aggressiveinterpretation of regulations, paying staff too much, and it wasfound to have mis-sold products to millions of customers -leading to it paying billions of pounds in compensation.
Lucas has had health problems and although that has notaffected his ability to do his job, it influenced his decisionto retire, a person familiar with the matter said in February.
He is the only Barclays executive director still in theirpost after the bank was fined over the Libor rate rigging.
Antony Jenkins replaced Bob Diamond as CEO and David Walkerreplaced Marcus Agius as chairman, and they have overhauledsenior management and promised to drive through a major changein culture and standards across the bank's 140,000 workforce.
Lucas was paid 1.9 million pounds last year, after foregoingany annual bonus. He was paid almost 4 million pounds in both2011 and 2010, including long-term awards.
Barclays (BARC)
