“Barclays PLC, the United Kingdom’s third-biggest bank, Thursday said Finance Director John Varley would succeed Matthew Barrett as group chief executive from Jan. 1, 2005, as part of a series of top management changes at the bank,” writes Andrew Peaple in today’s Wall Street Journal Online.

M”r. Barrett will take over from Peter Middleton as group chairman at the same time, with the latter standing down at the end of 2004. Mr. Varley will be deputy chief executive for the whole of next year.”

“In another high-profile move, Barclays acted quickly to beef up the role of Barclays Capital CEO Bob Diamond, who was Mr. Varley’s main competitor for the bank CEO job. Mr. Diamond will add responsibility for the group’s global wholesale and institutional businesses to his current job.”

“Market sentiment was cool toward the changes. Barclays shares rose 0.7% in morning trading in London.”

“Speculation had been rife that Mr. Diamond would quit Barclays if 47-year-old Mr. Varley beat him to the CEO role. Mr. Middleton admitted there was ‘a lot of disappointment around the place,’ but said he was ‘delighted’ to have appointed Mr. Varley, who has been part of Barclays’ senior management for 20 years and was seen by analysts as the man with the most all-round banking experience.”

” ‘I’ve known John longer than anyone in the bank. He’s hugely well qualified for the job,’ Mr. Middleton added, at the same time dismissing any suggestion that Mr. Diamond would quit his new role shortly.”

“Mr. Barrett has been criticized in some quarters for failing to land a big acquisition during his four years as CEO, though the bank did buy Spanish bank Banco Zaragozano SA in August.

“Analysts were generally relieved Mr. Barrett would stay on, and said the management changes at the bank were largely as expected.”

” ‘Middleton and the board have done an adroit job in making sure all senior management will be satisfied with their new roles. Everyone will feel they are getting something out of it,’ said Hugh Pye of BNP Paribas.

Barrett is a former chairman and CEO of Bank of Montreal. He left the bank in 1999.