NEW BARCLAYS CHAIRMAN IS TOLD: BRING YOUR CHAINSAW

IRATE shareholders urged the new chairman of Barclays to ‘bring his chainsaw’ to radicallly shake up the bank, writes James Salmon.

John McFarlane, who has a reputation for ruthlessness, most recently as chairman of Aviva, officially took the helm yesterday at the end of the bank’s annual general meeting with shareholders.

Investors in the audience expressed their frustration at the performance of the bank and its habit of paying more in bonuses than in dividends, and warned the directors to expect a rough ride.

Describing the challenge he faces in his new job as ‘formidable’, McFarlane, pictured, spelled out some of his key priorities for Barclays, in a letter to shareholders.

These include accelerating plans to dump assets and parts of the business it no longer wants, and boosting returns across the bank.

But shareholder Philip Meadowcraft, a pension fund trustee, suggested McFarlane’s plans would lead to casualties on the board, describing the incoming chairman as a ‘ruthless turnaround specialist’.

One of McFarlane’s first acts when he became chairman of Aviva in 2012 was to get rid of chief executive Andrew Moss. He then ousted several other board members.

But Mr Meadowcroft suggested Barclays may need similar treatment and referred to the radical turnaround achieved under McFarlane’s watch.

Shareholder Phil Clarke vented his frustration at Barclays’ decision to pay out £1.86bn in bonuses last year, despite a 21pc drop in profits.

He said: ‘I desperately hope McFarlane brings his chainsaw from Aviva and sorts this out.’

One investor expressed his disappointment that shareholders had, yet again, come second-best to staff when it came to sharing the bank’s spoils, receiving total dividends of just £1.06bn.

He said: ‘What is the point of Barclays as a bank? It seems to be a bank run for the benefit of executives and not the shareholders’.

This was greeted with applause from the audience.

Both chief executive Antony Jenkins and Sir David Walker said the bank had made significant progress, pointing to a strengthening capital position and a 12pc jump in adjusted profits last year.