Barclays appoint Bob Diamond as Chief Executive

Barclays appoint bob Diamond as boss

After a successful turnaround of Barclays Capital, Bob Diamond is to become Barclays' new chief executive.

The American, who reportedly earned an estimated £100 million ($153 million) with Barclays Capital, is one of the highest paid bankers in the world, and will replace current chief executive John Varley; the man credited with guiding Barclays during the global recession.

Barclays chairman, Marcus Agius, acknowledged Mr Diamond has a "proven track record as a business leader," and is "superbly qualified" to lead Barclays forward.

"I am honoured by the board's confidence in me and greatly motivated by the challenge of leading Barclays during the critical period ahead," Mr Diamond said.
"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."

The promotion should see Mr Diamond score a significant pay-rise - somewhere in the region of £11.5 million a year ($17.7 million) - if he achieves his bonuses. His base salary is £1.35 million ($2 million).

"The compensation arrangements have been benchmarked against a peer group of global universal banks, industrial companies and financial services institutions," Barclays said.

Inflated salary could draw condemnation

Despite Mr Diamond's previous success, the inflated salary will likely draw condemnation from commentators, as the UK still tries to shake the shackles of a recession mire. "At a time when the economy remains weak, this package is likely to spark widespread criticism," said Robert Peston.

Despite the inflated salary, few will argue with Barclays' decision to appoint Mr Diamond. "Even Mr Diamond's most jealous rivals would concede that he has done an impressive job in building up Barclays Capital; and that it's the growth at Barcap which has turned Barclays into a leading global financial institution."

Barclays profits were reported at £3.95 billion ($6.07 billion) for the first half of 2010, with the vast majority coming from Barclays Capital.

The appointment of an American is seen as an attempt by Barclays to promote itself as a truly global brand.

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