City's fattest cat gets Barclays top job

Tuesday, 7 September 2010 10:48 AM

By politics.co.uk staff

The man Peter Mandelson has described as the "unacceptable face" of banking has been appointed as Barclays' next chief executive.

Bob Diamond, who is said to be worth over £90 million, is a hugely controversial figure outside the City.

The American's high salary has attracted criticism from politicians, with Vince Cable among those who have spoken out against him.

His appointment represents a major shift at the top of Barclays, which had been headed by John Varley for the past seven years.

Barclays chairman Marcus Agius defended the move, however. "I am delighted Bob Diamond will be his successor," he said.

"He is superbly qualified, with more than 30 years' experience in the banking sector, the last 14 of which have been with Barclays.

"He has a proven track record as a business leader, and I and the board very much look forward to working with him in his new role."

The 59-year-old will receive an annual salary of £1.35 million, with further bonuses available of nearly £4 million.

Union leaders reacted with alarm.

GMB general secretary Paul said: "These are the bankers who caused the recession sticking two fingers up at the taxpayers who rescued them.

"This is about as insulting and divisive as it gets. A person who poured petrol on the flames of the fires in the financial system has been rewarded rather than been punished for what he did. Meanwhile GMB members are enduring pay freezes and face job cuts to make good the damage Diamond caused."

The government may seek to downplay the news as it finally succeeds in unveiling its choice as trade minister.

HSBC's executive chairman Stephen Green is expected to be confirmed as David Cameron's choice in the key post, after the coalition initially struggled to find a sufficiently senior figure for the role.

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• banking crisis
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• economy
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• economy and finance