Barclays plans to set up an independent holding company for Barclays Global Investors to enable senior executives to purchase equity stakes in the money manager. Matthew Barrett, Barclays chief executive, is expected to put the proposal to shareholders at the groups annual general meeting in late April. At this stage no further details are available, said a Barclays spokeswoman.
Announcing group results for 1999, Mr. Barrett told reporters he wanted to launch a long-term incentive plan "to give senior executives a good stake in the company.
He said BGI needed to invest continually in its business to fight off competition. It is speculated that external investors may be invited to invest in the money manager as well, to provide the group with a capital injection.
BGI reported an operating profit of £43 million ($68.8 million) for 1999. This was £9 million less than 1998s operating profit of £52 million and was due to continuing investments in product research and development.