Barclays snubs Bramson after activist investor moves for seat on the bank’s board

Barclays has snubbed Ed Bramson after the activist investor moved for a seat on the bank’s board.

Bramson floated the idea of his investment vehicle Sherborne Investors being given a seat on the board at a meeting a few weeks ago, according to Sky News.

But the lender told Bramson, who has called for the bank’s investment banking division to be downsized, the move would be inappropriate.

Sources told Sky News the request was made informally at a meeting with chief executive Jes Staley – any formal request would have to be disclosed to the stock market.

Bramson, who upped his stake in the bank from 5.16 per cent to 5.41 per cent in April, began meeting with other shareholders to gain their backing over changes to the investment bank earlier this year.

The Sherborne Investors boss reportedly told large investors he wanted the bank to up returns from its investment bank and increase payouts to shareholders.

But the under-pressure investment banking division posted impressive third quarter results as income rose 19 per cent.

Following the results, Staley defended the division and cited his bank's involvement in the three juiciest deals of the year: Comcast's swoop on Sky, Michael Kors' move on Versace and Rangold's merger with Barrick. “Four quarters in a row we have gained market share,” Staley said, adding “the reality of what is happening belies the proposition that we can't compete.”

Sherborne’s stake in Barclays allows it to call extraordinary general meetings to put motions to shareholders, including over board appointments.