Bob Diamond was named today as the next chief executive of banking group Barclays.
Mr Diamond, who is estimated to be worth £95m sterling, will take over from John Varley after the incumbent steps down next year. The 59-year-old American's appointment was made today as part of an unexpected shake-up at the top of Barclays.
Mr Diamond, one of the world's highest paid bankers, joined the group in 1996. He currently serves as Barclays' president and chief executive of Barclays Capital, the firm's investment arm.
The Times Rich list estimates that Mr Diamond sits on a personal fortune worth around £95m. He is thought to have made £11.6m last year despite waiving a pay rise.
He will replace Mr Varley after he steps down next March after a seven-year stint as chief executive.
Mr Diamond will receive an annual salary of £1.35m, up from the £250,000 he has received every year since 1999, with a potential annual bonus of up to £3.375m. He will also be entitled to long-term performance-based incentive shares worth £6.75m next year.
Barclays said the payments were benchmarked against a peer group of other global banks and financial services firms.
It has been suggested that Mr Diamond's appointment could be seen as controversial among members of the coalition, as his lack of experience in traditional high street banking will be at odds with the British government's aims. It comes at a time when ministers are urging Britain's banking sector to open up lending to small businesses in a bid to aid the economic recovery.
Mr Diamond is expected to relocate to London from New York, where he has spent the past two years integrating Lehman Brothers into Barclays Capital. Under his stewardship, the investment banking division has been the powerhouse of profits growth at Barclays during recent years.
Mr Varley will become a senior adviser on regulatory matters to Mr Diamond and the board until September 30 2011.
The outgoing chief executive, who is chairman of Business Action on Homelessness, is expected to concentrate on charitable work and a range of non-executive directorships.
HSBC chairman to join British government
HSBC chairman Stephen Green is to join the British government as Trade Minister next January, the banking giant confirmed today.
Mr Green, 61, will step down from HSBC before the end of the year to take up the post, ending a 28-year career with the bank.
The government said the role - which will be unpaid - will focus on developing international relationships to boost British businesses abroad and drive UK exports.
