[ by Melanie Gretchen ]

Barclays's about-face: whatever you may think about the firm's recent participation in the Libor scandal, Antony Jenkins' latest proposal is restoring faith in its reputation.  Within the next 6 to 12 months, the new CEO of the British bank will pay employees based in part on whether they are good citizens.  Mr. Jenkins was appointed to the top of Britain's 4th-largest bank at the end of August after his predecessor, Robert Diamond Jr., and the bank's COO, Jerry del Missier, resigned following Barclay's agreement in June to pay $453 million to settle allegations that it manipulated Libor.

The New Score. Going forward, a "balance scorecard" with metrics will measure performance across a range of areas, including how the actions of executives affect the environment, Mr. Jenkins said on Sunday at the Clinton Global Initiative.

"It is possible to get extremely depressed" listening to all the talk about global ills at such conferences, Mr. Jenkins said, because so many of them demand long-term solutions at odds with the short-term profitability of so many corporations.  Barclays is adept at managing sustainability, but has "to do better" at managing short- against long-term goals.

Mr. Jenkins, who previously ran Barclays’ business and retail banking division, headed his unit with a similar system.  His scorecard rated employees on how their actions affected all stakeholders, including investors, customers, other employees and "society."  The scorecard includes a “citizenship” component, according to a bank spokesman.

In establishing a clear agenda for employee performance going forward, the bank will be able to "relentlessly pursue" its objectives, including "becoming a source of good for society," Mr. Jenkins said during a presentation on environmental sustainability and social goals.  The conference is run by a think tank started by former U.S. President Bill Clinton.

C-I Note: It sounds like a good idea, and yet, this kind of good idea going bad, sounds like it could go very bad – hence nullifying Mr. Jenkins's good intentions.  We'll know in time either way:

• whether Barclays will inspire renewed trust if not greatness throughout the industry; or
• whether the firm have stuck to the medical adage, "do no harm."

For further details, go to [Dealbreaker, 9/25/12] and [Reuters, 9/24/12].