Why has idiosyncratic Idzik exited? In early May, it seeped out that Paul Idzik, Barclays’ chief operating officer, had decided to leave the UK bank. And for a while, all anyone wanted to discuss was the Idzik exodus.
The business pages claimed Idzik was departing because of tension between Barclays’ chief executive, John Varley, and its president, Bob Diamond. I don’t believe a word of this. I believe that someone who wanted to damage Barclays placed this story with the press. And the inference of feuding and fiefdoms contributed further to investor disenchantment with Barclays, whose share price has fallen some 23% so far this year.
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"Paul Idzik leapt like a mountain goat over a Barclays security barrier to prove that there was no security" |
Paul Idzik, whom one source describes as “a titan of management process”, joined Barclays Capital as chief operating officer in 1999 from Booz Allen. He flourished: his strong intellect and work ethos impressed Diamond, who recommended him to Varley for a senior role at group headquarters. Idzik obviously managed upwards well. His ability to manage downwards is more questionable. A number of stories circulate about his unconventional behaviour. Such stories presumably were leaked by enemies rather than friends. Idzik is said to have leapt like a mountain goat over a Barclays’ security barrier to prove that there was no security. Nothing wrong with that I suppose. I only wish my legs were longer so I could imitate his feat. Think how many calories one could burn entering and exiting the office. However, grumbling at employees in possession of items with alien logos (as Idzik is said to have done) seems sanctimonious. And can it be true that he once berated a slovenly attired person in the lift for appearing unprofessional in the workplace only to suffer the humiliation of discovering that his victim was a client?
A mole whispers that perhaps Idzik’s power in the group was waning and that he therefore saw little prospect of further promotion. “With Diamond and Varley both still there, Paul’s prospects of reaching the top were curtailed,” Mole muttered. Another source said that Idzik had done an excellent job of streamlining the corporate structure and felt it was time to move on.
The furore surrounding the Idzik exit is incidental. The real story here is the John and Bob relationship – or lack thereof. Since late 2003, when Diamond lost out to Varley in the race to be chief executive, detractors have whispered that the punctilious Englishman and the suave American co-exist uneasily. They are certainly very different but they do complement each other and I am inclined to believe a source who says: “John and Bob have mutual trust and respect. It is a relationship that works.”
If Diamond hadn’t wanted to work with Varley any more, he would have quit a long time ago. Financially he can afford to do what he wants. Moreover, Diamond is not petulant nor is a lengthy campaign of gnat-like back-stabbing his style. Nevertheless, Diamond and Varley share a big challenge. They need to squelch once and for all rumours that they avert their eyes when they pass each other.
Dubai, Mumbai, Shanghai or good-bye
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