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Sir Stelios: “Mike Rake was the dog that didn’t bark” in Barclays LIBOR scandal
Posted: 02 July 2012
Commenting on the appointment of Mike Rake to the deputy chairmanship of Barclays, easyJet founder and largest shareholder Sir Stelios Haji-Ioannou said:
"I am very concerned at this latest development. In 2009 Mike Rake promised me face-to-face (before we offered him the easyJet chair) that he would scale back his other City commitments in order to concentrate on easyJet and BT.
"Yet three years on he still clings to four big jobs including Barclays (which has just become more time consuming ) and US-based McGraw Hill (owners of Standard and Poors) which requires extensive transatlantic travel.
"And this is before all his other public and private roles are taken into account – so just another example of jobs for the boys.
"It is now apparent Mike Rake is severely compromised by recent revelations of deliberate manipulation of LIBOR at BarCap. As Mike Rake is chairman of the relevant Audit sub-committee and a member of the Risk Management and Corporate Governance sub-committees; detection and exposure of these wrongdoings were ultimately his responsibility.
"But Mike Rake was the dog that didn't bark.
"I would suggest these unfortunate events at Barclays offer him the perfect opportunity to stand down from the easyJet chair so we can appoint someone who will be able to devote more time to the protection of shareholder value.
"His record at easyJet stands as a landmark of conflict of interest. In total our company has paid $8bn for new aircraft – all to Airbus where KPMG – his former shop - are auditors. And they are now talking about ordering more planes from Airbus without a shareholder vote.
"In addition, Standard Life, the second largest easyJet shareholder manages the Airbus pension fund and the BT pension fund. Standard Life kept him in his chair at easyJet's last AGM but will not succeed in doing so forever.
"Just how much more conflicted can a guy be?
"We will therefore have to pay close attention to developments and consider using our right as a major shareholder to call an EGM with Mike Rake's removal from office as the sole item of business."