Barclays appoints Diamond as new chief executive

Barclays appoints Diamond as new chief executive

London: British bank Barclays has appointed Bob Diamond, the head of its investment and wealth management business Barclays Capital, as its new group chief executive to replace current head John Varley next year.

Varley, who took over in 2004, will step down as chief executive and from the Barclays boards on 31 March, 2011 after he indicated that he wanted to move on when he turned 55.

As part of the transition Diamond, who turned 59 in July, has been credited with building Barclays Capital into a major investment bank since joining Barclays 14 years ago, will become president and deputy group chief executive next month.

“As a leading global universal bank, Barclays has the right model, the right strategy, and above all the right people to deliver for all our stakeholders," Diamond said in a statement. “We face the future with confidence."

Diamond’s long-time lieutenants Jerry del Missier and Rich Ricci, become from 1 October co-chief executives of Barclays Capital, in addition to being co-chief executives of the Corporate and Investment Bank.

Diamond, who is currently based in the United States but will move back to London, will receive a salary of 1.35 million pounds ($2.07 million) and his annual incentive award opportunity will be up to 250% of his base salary.

The bank said it intended to award a long term, performance-based share incentive of 500% of base salary in 2011.

Barclays chairman Marcus Agius said Diamond had a proven track record and was superbly qualified for the position.

“In making this appointment, the board is consciously ensuring continuity in management, strategy and our focus on delivering for customers, clients and shareholders," he said.