* Ex-FSA CEO will not return to Barclays from sick leave
* Adds to concern about health of senior bankers aftercrisis
* Head of technology Kheradpir resigns to become Juniper CEO
* Leaves gap in Barclays' 13-person exec team
By Steve Slater
LONDON, Nov 13 (Reuters) - Britain's former top financialindustry regulator Hector Sants has resigned from Barclays, citing stress and exhaustion, 10 months after joiningthe bank as head of compliance.
Barclays said on Wednesday its head of technology, ShayganKheradpir, had also resigned to become chief executive ofJuniper Networks, dealing a double blow to ChiefExecutive Antony Jenkins' attempts to revive the bank andrestore its reputation.
Sants, 57, had been on sick leave since the beginning ofOctober, and decided he will not be able to return to work inthe near term so has resigned, Barclays said.
The former investment banker ran Britain's FinancialServices Authority (FSA) through the financial crisis and joinedBarclays at the start of this year, but he is the latestexecutive to show the strains of the financial crisis and itsaftermath on employees' health.
Lloyds Banking Group Chief Executive AntonioHorta-Osorio took two months off at the end of 2011 on doctors'orders after suffering sleep deprivation and exhaustion. Hereturned to work in early 2012 and has been praised for leadingLloyds' turnaround and has been held up as an example to counterthe stigma of mental illness.
Hiring Sants was seen as a coup for Barclays after it was fined $450 million in summer 2012 by the FSA and U.S. regulatorsfor attempted manipulation of Libor interest rates.
Sants, who was knighted in 2013 for services to financialservices and regulation, was tasked with helping Jenkins restoreBarclays' reputation and improve relations with regulators.
He had a busy start as the bank came under scrutiny forseveral conduct issues, including an investigation into advisory fees to Qatari investors who helped bail it out duringthe financial crisis and a $453 million fine imposed by a U.S.energy regulator in July.
Barclays is also among several banks who have paid outbillions of pounds in compensation to customers mis-soldproducts and the industry is now under scrutiny for allegedmanipulation of foreign exchange markets.
Sants was FSA chief executive from 2007 to 2012 afterjoining the regulator in 2004. He previously worked at CreditSuisse and UBS.
He is reported to have been on an annual pay package of 3million pounds at Barclays, compared to 836,000 pounds in hislast year at the FSA.
Barclays shares closed down 2.8 percent at 249.5 pence in aweaker European banking index. Analysts said the departures werea setback for Jenkins, but should not derail his turnaroundefforts.
Kheradpir will become CEO of Juniper, a network gear makerbased in California.
Barclays promoted him to a new role as head of operationsand technology in March, after joining from U.S. telecoms firm Verizon at the start of 2011.
The departures mean Jenkins has lost two people from his13-person executive team.
The bank said it will start internal and external searchesfor replacements.
Allen Meyer, head of compliance for corporate and investmentbanking, will take on Sants' role in the interim. Darryl West,chief information officer, will act as interim chief operationsand technology officer, the bank said.
- Board & Management Changes
- Hector Sants