Bob Diamond takes over the top job at Barclays

Published on Monday 6 September 2010 21:43

MAJOR change swept through the boardrooms of two of Britain's "big four" banks yesterday as Bob Diamond was confirmed as the new head of Barclays and HSBC chairman Stephen Green announced he is leaving to become trade minister in the coalition government.

• Bob Diamond Picture: PA

Diamond, who is thought to have already amassed a 100 million fortune during his 14-year career with Barclays, will enjoy a basic salary of 1.35m in the new role but will have the potential to earn a total package of up to 11.5m dependent on performance.

Barclays chairman Marcus Agius, who said the American was "superbly qualified" for the role, stressed the pay package was the "going rate" for a global banking leadership role.

The 59-year-old currently serves as Barclays' president and chief executive of Barclays Capital, the firm's investment arm which has made a major contribution to the bank's overall profits in recent years.

He will take over from current chief executive John Varley when he steps down in March.

Diamond - once described by Lord Mandelson as "the unacceptable face of banking" during the row over his reported pay package at Barclays Capital - moved into banking after starting out as a lecturer in business at the University of Connecticut.

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

His current responsibilities at Barclays Capital will be taken on by New-York-based Jerry del Missier and Rich Ricci, who is based in London, who will become co-chief executives of the business.

Meanwhile, HSBC veteran Green confirmed yesterday he would step down from the group before the end of the year to take up the trade minister post after a 28-year career with the banking giant. The government said the role - which will be unpaid - will focus on developing international relationships to boost British businesses abroad and drive UK exports. Green will take up a seat in the House of Lords next year.

He has been chairman at the bank for more than four years, having previously acted as group chief executive between 2003 and 2006.

The bank said it had been working on plans for a successor to Green "for some months" and aimed to announce its new chairman by the end of 2010.

It first emerged that Green was planning his departure from the bank in May, as part of a succession strategy which will see HSBC end a long-running tradition of appointing an executive chairman at the top.

Business Secretary Vince Cable said Green's appointment "sends a strong signal to our trading partners that the government views the promotion of trade and investment as a key priority". The CBI also welcomed the appointment, saying Green was "ideally suited for this pivotal role".

Shares in HSBC slipped 0.4p to 662.4p, while Barclays fell 8.85p to 314p.