The new Bob Diamond

Updated: 
Bob DiamondBarclays (LSE: BARC) fell 2p, or 1%, to 184p in early London trade after the bank named its new chief executive.

The FTSE 100 (UKX) firm said Antony Jenkins had been appointed chief executive with immediate effect. He replaces Bob Diamond, who resigned earlier in the year following the Libor scandal. Before today, Mr Jenkins had been in charge of the group's high street and business banking operations.

Marcus Agius, chairman of Barclays, said:

"Antony stood out among a very competitive field of internal and external candidates because of his excellent track record transforming Barclaycard and Barclays Retail and Business Banking."


Sir David Walker, chairman-elect of Barclays, added:

"The field of short-listed candidates that I met was very strong, and it was clear that Antony was the outstanding choice."

Antony Jenkins, the new boss, said:

"Barclays is a strong universal bank... But we have made many serious mistakes in recent years and clearly failed to keep pace with our stakeholders' expectations. We have an obligation to all those stakeholders... and a unique opportunity to restore Barclays' reputation by making it the "go to" bank in all of our chosen markets".

Barclay confirmed Mr Jenkins will receive a £1,100,000 annual wage, a further £363,000 cash allowance in lieu of pension contributions, plus the potential to earn a £2,750,000 maximum annual bonus. Mr Jenkins will also be eligible to be considered for share awards of up to 400% of his annual salary in any one year.

For context, Bob Diamond collected a £1,350,000 salary during 2011, while other bonuses, benefits and awards took his total remuneration last year to beyond £7 million. For 2010, Mr Diamond's total remuneration topped £9 million.

Nice work if you can get it.

However, if you can't face backing the high-rollers in the banking sector, you may wish to consider the shares favoured by legendary City fund manager Neil Woodford. He sold all his bank shares well before the crash of 2008 and continues to avoid the sector completely.

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