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| Bob Diamond to be new Barclays chief | Bob Diamond to be new Barclays chief |
| (40 minutes later) | |
| One of the world's highest paid bankers, Bob Diamond, is to become chief executive of Barclays. | One of the world's highest paid bankers, Bob Diamond, is to become chief executive of Barclays. |
| The American, who has made about £100m as head of the bank's investment arm Barclays Capital, will replace the current chief executive John Varley next year. | The American, who has made about £100m as head of the bank's investment arm Barclays Capital, will replace the current chief executive John Varley next year. |
| Mr Varley was credited with steering Barclays through the financial crisis. | Mr Varley was credited with steering Barclays through the financial crisis. |
| Meanwhile, HSBC chairman Stephen Green is also moving on to become a government trade minister. | Meanwhile, HSBC chairman Stephen Green is also moving on to become a government trade minister. |
| Mr Green's departure will end his 28-year career at HSBC, having spent three years as chief executive and four years as chairman. | Mr Green's departure will end his 28-year career at HSBC, having spent three years as chief executive and four years as chairman. |
| HSBC has yet to formally announce the move. | HSBC has yet to formally announce the move. |
| BBC business editor Robert Peston said Mr Green's appointment by the coalition government "will doubtless be heralded as a coup by the prime minister" even though the record of business people in government has been "patchy". | BBC business editor Robert Peston said Mr Green's appointment by the coalition government "will doubtless be heralded as a coup by the prime minister" even though the record of business people in government has been "patchy". |
| Meanwhile Bob Diamond's appointment as Barclays' new boss will reinforce a view that Barclays sees its future as a global investment bank, he said. | Meanwhile Bob Diamond's appointment as Barclays' new boss will reinforce a view that Barclays sees its future as a global investment bank, he said. |
| Pay rise | Pay rise |
| Marcus Agius, Barclays chairman, called Mr Diamond "superbly qualified", with "a proven track record as a business leader". | Marcus Agius, Barclays chairman, called Mr Diamond "superbly qualified", with "a proven track record as a business leader". |
| "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. | "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." | "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." |
| His promotion means that Mr Diamond can expect to earn up to £11.5m a year. | His promotion means that Mr Diamond can expect to earn up to £11.5m a year. |
| His base salary will be £1.35m, Barclays said, with the rest awarded in bonuses. | His base salary will be £1.35m, Barclays said, with the rest awarded in bonuses. |
| "The compensation arrangements have been benchmarked against a peer group of global universal banks, industrial companies and financial services institutions," the bank said. | "The compensation arrangements have been benchmarked against a peer group of global universal banks, industrial companies and financial services institutions," the bank said. |
| But Robert Peston warned that the rewards may be controversial. | But Robert Peston warned that the rewards may be controversial. |
| "At a time when the economy remains weak, this package is likely to spark widespread criticism," he said, though he added that the choice of Mr Diamond was no surprise. | "At a time when the economy remains weak, this package is likely to spark widespread criticism," he said, though he added that the choice of Mr Diamond was no surprise. |
| "Even Mr Diamond's most jealous rivals would concede that he has done in 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." | "Even Mr Diamond's most jealous rivals would concede that he has done in 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." |
| Investors appeared unimpressed by the news, however, with Barclays shares falling 1.5% at the beginning of trading on Tuesday. | Investors appeared unimpressed by the news, however, with Barclays shares falling 1.5% at the beginning of trading on Tuesday. |
| Barclays reported profits of £3.95bn for the first half of 2010, with the vast majority coming from Barclays Capital. | Barclays reported profits of £3.95bn for the first half of 2010, with the vast majority coming from Barclays Capital. |
| BarCap will now be run by Barclays executives Jerry del Missier and Rich Ricci, who will become its co-chief executives. |