Salz Review - Wall Street Journal

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167 Salz Review An Independent Review of Barclays’ Business Practices Barclays’ press release announcing appointment of Anthony Salz – 24 July 2012 257 On 2 July, Barclays announced that it would establish an independent review of its business practices, reporting to Deputy Chairman, Sir Michael Rake, and a sub-committee of the Barclays Board. Barclays today announces that Anthony Salz has agreed to lead that review. The global review will assess the bank’s current values, principles and standards of operation and determine to what extent those need to change; test how well current decision-making processes incorporate the bank’s values, standards and principles and outline any changes required; and determine whether or not the appropriate training, development, incentives and disciplinary processes are in place. The review’s findings and recommendations will be published, based on evidence gathered through extensive engagement with all of the bank’s stakeholders and a thorough review of all pertinent documentary evidence. Any interested party is encouraged to provide input to the review by submitting a perspective or evidence via queries@salzreview.com. Mr Salz will direct the review as he deems appropriate. He will have the support of a senior, independent individual to act as his deputy, as well as a team of staff from a professional services firm. Barclays will fill both of those support roles in direct consultation with Mr Salz. Barclays Board and Executive Committee will consider the review’s recommendations carefully, with the intention of implementing them in full. Shortly after the conclusion of the review, Barclays will publish an account of how it intends to implement its recommendations. Commenting on his appointment, Mr Salz said: “Barclays has a real opportunity to use the events of the past weeks to drive a change in its values and practices, and I look forward to hearing views on the changes that should be made. I very much hope that this review will significantly assist Barclays in rebuilding trust and reaffirming its position as one of our leading institutions.” Sir Michael Rake, Deputy Chairman, said: “Anthony Salz is the ideal individual to lead this review given his standing and experience. He has the full support of the Barclays Board, and we will ensure that he has whatever resources necessary at his disposal to make it thorough and far-reaching. We expect this work to contribute significantly to the broader change that we intend to bring about to the way in which Barclays operates.” 257 www.newsroom.barclays.com/Press-releases/Anthony-Salz-to-lead-independent-business-practicesreview-915.aspx.
Salz Review An Independent Review of Barclays’ Business Practices 168 Terms of Reference for the Review Context The culture of the banking industry overall, and that of Barclays within it, needs to evolve. A number of events during and after the financial crisis demonstrated that banks need to revisit fundamentally the basis on which they operate, and how they add value to society. Trust has been decimated and needs to be rebuilt. Barclays acknowledged that need some time ago and has begun to put in place changes in the way in which it operates consistent with that need. However, recent events indicate clearly that Barclays, like other big UK banks, needs to redouble its efforts. That task may seem more daunting today than ever, but Barclays remains committed to it. As an institution, Barclays must move further and faster to demonstrate that banks, and those who work for them, consistently operate to the highest standards of probity, integrity and honesty. This requires clear evidence, not assertion. Culture is generally defined as “the instinctive behaviours and beliefs characteristic of a particular group”. Changing a culture, therefore, requires at least three things: ― Affirming the key values and operative beliefs that guide the behaviour of everyone in an organisation – these are deep-seated and tend not to change without direct intervention. ― Ensuring that the actual behaviours of those who represent the organisation are consistent with those values (and are so regarded by those who come in contact with the bank); and ― Ensuring that vital reinforcing mechanisms, such as visible leadership examples, formal and informal systems and processes, policies and rewards, are aligned with those values, operative beliefs and behaviours. The burden of proof required to demonstrate change in culture is now much higher. The Barclays Board is conducting this review (the Review) of Barclays business practices to assist in the bank’s efforts to rebuild trust by making it a leader in businesses practices among not only its peer institutions, but also multinational corporates generally. The Review is independent, reporting to Sir Michael Rake and a sub-committee of Non- Executive Directors (the Committee) including David Booth; Alison Carnwath; and Sir John Sunderland. Anthony Salz has agreed to lead the Review (the Reviewer) in a personal capacity. Barclays Board and Executive Committee will consider the review’s recommendations carefully, with the intention of implementing them in full. Barclays will publish an account of how it specifically intends to implement them a short time after the conclusion of the Review. The broader work at Barclays oriented at changing the bank’s culture will be particularly informed by the Review’s recommendations.
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Salz Review - April 2013
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Salz Review - Wall Street Journal

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