Barclays chairman to retire early

Barclays chief executive Matt Barrett is poised to become chairman of the banking giant earlier than expected, it was reported today.

Succession plans in place since last October said that Mr Barrett would replace Sir Peter Middleton as chairman at the end of the year with former finance director John Varley stepping into the chief executive’s role.

However, The Sunday Telegraph said Barclays would announce this week that Sir Peter’s retirement had been moved to September – ending five years as chairman.

The report said shareholders had been concerned about the year-long wait for Mr Varley to take on the top job, while Sir Peter’s departure at the end of the year, rather than at the annual meeting in May, was also seen as unusual.

It is thought that Sir Peter had decided to move his retirement date forward because a number of corporate governance issues were close to being resolved.

These include shareholder concerns over Mr Barrett’s switch from chief executive to chairman, a move that goes against boardroom best practice.

Barclays said in October that as “one of the world’s most senior bankers”, Mr Barrett’s level of experience met the requirement of exceptional circumstances allowed for in the Higgs Review on corporate governance.

An early change should also allow Mr Varley to gain full control of the company’s strategic direction at a time when acquisitions are on the horizon.

The shake-up is likely to see non-executive board member Sir Nigel Rudd step up to become deputy chairman. He is also currently chairman of retailer Boots and glassmaker Pilkington.

Barclays declined to comment on the report today.