Barclays has ignored Edward Bramson, an activist investor, after he moved for a seat on the board of the bank.
According to Sky News, Bramson presented the idea of Sherborne Investors, his investment vehicle, being given a seat on the board during a meeting that was held a few weeks ago.
However, the lender informed Bramson that the move would be inappropriate. Bramson has called for the downsizing of the investment banking division of the bank.
Some sources informed Sky News that the request was informally made during a meeting with Jes Staley, the chief executive of the bank since any formal request would have to be disclosed to the stock market.
Last Friday, it was not clear when Barclays was able to relay its decision to Bramson.
Last April, Bramson raised his stake in the bank from 5.16 percent to 5.41 percent. Earlier this year, he started meeting with some of the shareholders of Barclays to gain their support over some changes to the investment bank.
Reportedly, the boss of Sherborne Investors informed large investors that he wanted the bank to raise the returns from its investment bank and increase the payouts to the shareholders.
However, the under-pressure investment banking division posted impressive third-quarter results as income increased by 19 percent.
After the results, Staley defended the division and cited the involvement of his bank in the three juiciest deals of the year: the move of Michael Kors on Versace, the merger of Rangold with Barrick, and the swoop of Comcast on Sky.
Staley stated: “Four quarters in a row we have gained market share.”
He aded: “The reality of what is happening belies the proposition that we can’t compete.”
The stake of Sherborne in Barclays allows it to call extraordinary general meetings to present motions to shareholders, including over board appointments.