28th Apr 2016 10:27
LONDON (Alliance News) - Jes Staley, the chief executive of Barclays PLC, on Thursday told shareholders he knew the decision to cut the bank's annual dividend would be unpopular, and pledged to increase the payment to higher than its previous level over time.
Since becoming chief executive in December, Staley has been intent on intensifying the rundown of Barclays' non-core division of unwanted assets, and in March told shareholders they will receive a reduced dividend of 3.0 pence per share in both 2016 and 2017, down from 6.5p in 2015 to help accelerate that process.
Speaking to shareholders at the bank's annual meeting on Thursday, Staley said he's "determined" to get the dividend to a level they deserve.
"My intention is not to simply restore the dividend to a pre-cut level but to increase it progressively over time. The actions we are taking now in relation to non-core will accelerate the timescale for when that may be achieved," Staley said at the meeting.
Staley, who bought 2.8 million shares in Barclays at 233.0 pence each in November, said his interests are aligned with those of shareholders.
"I knew therefore that this decision would not be welcome or popular," he said of the dividend cut.
Chairman John McFarlane told shareholders the shareholder value that Barclays can create by accelerating rundown of the non-core division "will significantly exceed the cost to shareholders of the dividend reduction."
"I can also assure you that the decision was only taken after a thorough discussion and debate by the board," McFarlane said at the meeting.
Shares in Barclays were down 0.1% at 174.65 pence on Thursday morning, having risen from a low of 171.10p earlier in the day.
By Samuel Agini; [email protected]; @samuelagini
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