UK’s second largest bank by assets, Barclays Plc, is setting some precedents in the banking industry for its “no jerks” policy in the company.
“Everyone gets stressed from time to time but no one should ever not be nice. You know what a jerk is when you see it,” said Chief Executive Officer Bob Diamond in a recent interview with U.K.’s Times.
“If someone can’t behave with their colleagues and can’t be part of the culture, it doesn’t matter how good they are at what they do, they have to be asked to leave,” he added.
According to the Times report, up to 40 bankers had their contracts resolved for violating the “no jerk” rule. The bankers behaved inappropriately and did not accord with the company’s culture and policies.
A particular incident, which sparked public attention was in 2002, six Barclays bankers ran up a bill of $68,940 (44,000 pounds) on dinner and drinking at the Gordon Ramsay restaurant Petrus in London. Diamond referred to the incident as “Embarrasing. It was taking advantage—we have a responsibility to our colleagues and to have acted that way in a public place was inexcusable.”
The type of items orders during the infamous event included a 1982 Montrachet priced at 1,400 pounds and three bottles of Petrus Pomerol. A 1945 bottle of Petrus costs 11,600 pounds, a 1946 bottle 9,400 pounds, and a 1947 bottle 12,300 pounds. There was also a dessert wine costing 9,200 pounds, according to reports.
The scrutiny and controversy surrounding pay in the finance industry have been widely reported globally. Combined with the current uncertainty in the financial markets, overall bonuses are likely to drop by around 30 percent in 2011, experts say.
“Wall Street is becoming much more of a meritocracy,” says Paul Sorbera, president of Wall Street executive recruiter Alliance Consulting, in an interview with the New York Post. “Those who performed well need to get paid, and if they [aren’t], someone else is going to hire them.”
