Barclays unveils new boardroom plans

Thursday, 9 October 2003 12:00 AM

Barclays has announced a boardroom reshuffle, which makes chief executive Matt Barrett its new chairman.

The group has implemented new rules on corporate governance and appears to have gone against recommendations in the Higgs Review on best boardroom practice in appointing Mr Barrett to the chairmanship.

However, Barclays insists that Mr Barrett's promotion met the requirement of "exceptional" circumstances provided for by Higgs.

Mr Barrett will be succeeded by John Varley, who is currently group finance director and will become deputy chief executive in January, before succeeding Mr Barrrett in the chief executive's role.

A Barclays spokeswoman said: "We believe that Matt Barrett is uniquely qualified for this role. He is one of the world's most senior bankers."

The change will take place at the end of next year following the retirement of existing non-executive chairman Sir Peter Middleton.

Irish-born Mr Barrett joined Barclays as chief executive in October 1999 following a move from Bank of Montreal, where he was chairman and had worked since 1962. The 58-year-old was central to restoring the City's confidence in Barclays following a profits warning.

Mr Varley joined Barclays in 1982 and becoming finance director in November 2000.

Mr Barrett commented, "The organisational changes announced today accelerate the execution of our strategy and capitalise on the strengths of our top team."

He refuted suggestions that he had been reluctant to take the chairman post, stating, "I work for one of the best companies in the world, live in one of the best cities in the world and I'm having a great time in the UK, it was not a tough decision."

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