Barclays confirmed that Bob Diamond will head up the bank when John Varley stands down as CEO at the end of March next year.
The current head of Barclays Capital, is seen by many as the personification of the casino years in Britain's banking sector. His spectacular remuneration culminated in a 2007 bonus payment of £21 million as the UK economy teetered over the abyss. Barclays did not require direct state support during the credit crunch but is though to have benefitted enormously from the implicit guarantee signaled by other bail-outs in the sector.
Diamond's appointment will cause some irritation for the coalition. As a thoroughbred investment banker he would probably have been first for the chop if would-be Robespierre Vince Cable were to follow through on his populist declarations.
The move also signals the primacy of investment banking within Barclays's portfolio of operations, the opposite of an emphasis on retail banking activity, particularly business lending, the Liberal Democrats would like to see under a break-up of the big banks. The coalition's banking committee is due to report next year and looks likely to include a proposal that investment and retail activities be separated.
Diamond's annual remuneration is likely to receive a base salary of £1.35 million, with bonuses bringing overall annual remuneration to around £11.5 million.
