Barrett set to bow out at Barclays

BARCLAYS' flamboyant chief executive Matt Barrett looks set to bow out of the race to become the bank's next chairman.

Barrett, 59, was the lead candidate to claim the one of the most prestigious jobs in British banking.

But it is thought the Irish-Canadian does not have the appetite for the public scrutiny that comes with such a high-profile role.

He is expected to sever all ties with Barclays, Britain's third largest bank, when he steps down in the coming months. His one-year notice period may entitle him to his full £1.1m salary even if he leaves early.

Incumbent chairman Sir Peter Middleton - who is just one year shy of the official retirement age of 70 - is being urged to stay on to provide management continuity.

Finance director John Varley and Bob Diamond, boss of the investment banking arm Barclays Capital, are the front runners to replace Barrett.

Barclays is planning to clarify Barrett's future and name his successor before a board meeting in Rome on 27 and 28 October.

Meanwhile, Sir Nigel Rudd, one of Barclays' non-executive directors has been tipped to replace Sir Peter.

A Barclays spokeswoman refused to comment on the succession plans.