"Uncomfortable reading": 7 key extracts from the Salz report into Barclays' culture

"A few investment bankers seemed to lose a sense of proportion and humility".

The Salz Review-  a report into Barclays' cultural shortcomings post libor scandal - makes for "uncomfortable reading", according to the bank's current CEO. He's not wrong. Here are some key extracts (emphasis mine throughout):

The report suggests that if there were company values at Barclays, no-one knew about them:

We believe that the business practices for which Barclays has rightly been criticised were shaped predominantly by its cultures, which rested on uncertain foundations. There was no sense of common purpose in a group that had grown and diversified significantly in less than two decades. And across the whole bank, there were no clearly articulated and understood shared valuesso there could hardly be much consensus among employees as to what the values were and what should guide everyday behaviours. And as a result there was no consistency to the development of a desired culture.

HR wasn't given enough power:

At Barclays, HR at times appears to have been seen more as an administrative function required to satisfy business needs. Although Bob Diamond, on becoming President, also took on responsibility for Group Talent, the heads of HR were typically on neither the Group nor divisional Executive Committees. HR appears accordingly to have found it difficult to exercise an appropriate level of challenge to the businesses on some people-related issues. Heads of HR were not given the authority to push sufficiently for the heads of business units to reflect desired behaviours in a variety of matters, such as promotion decisions, performance reviews, or remuneration. Given the decentralised model, it was especially difficult for the Group Head of HR to have appropriate influence within the investment bank.

The law wasn't given enough power:

The institutional cleverness ... stretched relationships with regulators and resulted in them and the market questioning some of Barclays’ financial information. Barclays was sometimes perceived as being within the letter of the law but not within its spirit.

Cash > people:

At Barclays, pay was emphasised above any other aspect of people management (see Section 11). In addition, rather than being seen as a means of driving culture, people management was considered predominantly as a tool to increase business performance. Moreover, the people management processes seemed to us to be loosely linked, resulting in different, and sometimes conflicting, messages.

And maybe paying investment bankers too much had turned them all into bastards:

Most but not all of the pay issues concern the investment bank. To some extent, they reflect the inevitable consequences of determinedly building that business – by hiring the best talent in a highly competitive international market (and during a bubble period) – into one of the leading investment banks in the world. The levels of pay (except at the most senior levels) were generally a response to the market. Nevertheless, based on our interviews, we could not avoid concluding that pay contributed significantly to a sense among a few that they were somehow unaffected by the ordinary rules. A few investment bankers seemed to lose a sense of proportion and humility.

..or was it that paying investment bankers too much had merely attracted bastards?

Elevated pay levels inevitably distort culture, tending to attract people who measure their personal success principally on compensation. Our review indicates that this was the case in the investment bank, with many interviewees reporting a sense of an entitlement culture.

Well whichever it was, this doesn't reflect well on the bank’s top 70 executives, who were paid, according to the report  “consistently and significantly above the median compared to peer banks”.

The report concludes:

If Barclays is to achieve a material improvement in its reputation, it will need to continue to make changes to its top levels of pay so as to reflect talent and contribution more realistically, and in ways that mean something to the general public.

Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

Photo: Getty
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Hyper-partisan Corbynite websites show how the left can beat the tabloids online

If I were a young Tory looking forward to a long career, I’d be worried.

Despite their best efforts during the election campaign, the Sun, Daily Mail, Telegraph and Express failed to convince voters to give Theresa May a majority, let alone the landslide she craved. Instead, Labour made inroads thanks partly to increased turnout among younger voters who prefer to get their news online and from social networks.

The centre of power in the media has been shifting to the web for years, but during the election we saw just how well a crop of hyper-partisan left-wing news sites are using social media to gain the kind of influence once restricted to the tabloid press.

Writers for sites such as the Canary or Evolve Politics see themselves as activists as much as journalists. That frees them to spin news stories in a way that is highly attuned to the dynamics of social media, provoking strong emotions and allowing them to address their audience like a friend down the pub “telling it how it really is”.

People on Facebook or Twitter use news to tell their friends and the wider world who they are and what they believe in. Sharing the Canary story “Theresa May is trying to override parliamentary democracy to cling to power. But no one’s fooled” is a far more effective signal that you don’t like the Tory government than posting a dry headline about the cancellation of the 2018 Queen’s Speech.

This has long-term implications for the right’s ability to get its message out. Research by BuzzFeed has found that pro-Conservative stories were barely shared during the election campaign. It appears the “shy Tory” factor that skewed opinion polling in previous elections lives on, influencing what people are prepared to post online. If I were a young Tory looking forward to a long career, I’d be worried.

Distorted reality

Television was once the press’s greatest enemy. But its “newspaper reviews” now offer print titles a safe space in which they are treated with a level of respect out of all proportion to their shrinking readership. Surely this must change soon? After all, the Independent sometimes gets a slot (despite having ceased print publication last year) for its digital front page. How is it fair to exclude BuzzFeed News – an organisation that invests in reporting and investigations – and include the Daily Express, with its less-than-prescient weather predictions?

Another problem became apparent during the election. Because the press is so dominated by the right, coverage from the supposedly impartial broadcasters was skewed, as presenters and guests parroted headlines and front-page stories from partisan newspapers. Already, some political programmes, such as BBC1’s The Andrew Marr Show, have experimented with including news from outside Fleet Street. One of the newspaper industry’s most reliable allies is looking for new friends.

Alternative facts

The rise of sites spreading the left-wing gospel across Facebook may be good for Labour but that doesn’t mean it’s good for the public. This was illustrated on 16 June in a post by a relatively new entrant called the Skwawkbox, which claimed that a government “D-notice” – now called a DSMA-notice – might be in place restricting news organisations from reporting on the number of casualties from the Grenfell Tower fire.

The claim was untrue and eventually an update was added to the post, but not before it was widely shared. The man behind the blog (who gives his name in interviews only as “Steve”) insisted that because he had included a couple of caveats, including the word “if” in the text of his article, he was justified in spreading an unsubstantiated rumour. Replacing an irresponsible right-wing tabloid culture in print with equally negligent left-wing news sites online doesn’t feel much like progress.

Blood and bias

Narratives about the corrupt, lying mainstream media (the “MSM” for short) have become more prevalent during the election, and it’s clear they often hit a nerve.

On 17 June, a protest over Theresa May’s deal with the DUP and the Grenfell Tower fire made its way past BBC Broadcasting House, where a small group stopped to chant: “Blood, blood, blood on your hands!” Hours later, in the shadow of the burned-out tower, I heard a young woman complain loudly to her friends about money being used to fly BBC news helicopters when it could have gone to displaced victims.

The BBC cites the accusations of bias it receives from both ends of the political spectrum as evidence that it is resolutely centrist. But while many of its greatest critics would miss the BBC if it goes, the corporation could do a better job of convincing people why it’s worth keeping around.

Grenfell grievances

Early reports of the attack on a Muslim crowd in Finsbury Park on 19 June exhibited a predictably depressing double standard. The perpetrator was a “lone wolf”, and the Mail identified him as “clean-shaven”: phrases it is hard to imagine being used about an Islamist. Yet the media don’t just demonise Muslims in its reporting; they also marginalise them. Coverage of Grenfell contained plenty of references to the churches in this part of west London and its historic black community. Yet Muslims and the relief work carried out by local mosques received comparatively little coverage. Community issues such as Islam’s requirement that the dead are buried swiftly were largely ignored, even though a large number of those killed or made homeless by the fire were Muslim.

I suspect this may have something to do with outdated ideas of what north Kensington is like. But it also must reflect the reality that just 0.4 per cent of UK journalists are Muslim, according to a study by City University in London. The lack of diversity in the media isn’t just a moral issue; it’s one that affects our ability to tell the full story.

This article first appeared in the 22 June 2017 issue of the New Statesman, The zombie PM

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