Barclays: Concern over breach of code

Matt Barrett, the 55-year-old Irish-born chief executive of Barclays, risked a shareholder revolt yesterday after being named chairman-designate of the high street bank.

Barclays surprised the City by announcing he would succeed Peter Middleton at the end of next year.

Barclays is breaching the City's corporate governance code by appointing its chief executive as chairman. Institutional investors told the bank they were concerned.

Derek Higgs,a former investment banker, drew up the code in January 2003 which was funded by the UK government.

The document said that the roles of chairman and chief executive should be separated.

However Mr Higgs cited Barclays as an example of where a breach was acceptable.

Middleton added the chief executive title to his chairman role, for almost a year before Barrett arrived in October 1999.

John Varley, the finance director, is to succeed Mr Barrett as chief executive at the end of 2004 and is viewed as a safe bet.

Mr Varley missed out on the top job four years ago.