Banking giant Barclays yesterday unveiled a boardroom shake-up that will see chief executive Mr Matt Barrett take on the chairmanship four months early.

Mr Barrett will replace Sir Peter Middleton as chairman at the start of September with former finance director Mr John Varley stepping into the role of chief executive. This marked a departure from previously announced succession plans that paved the way for a handover of boardroom power at the end of the year.

Sir Peter said the appointments ensured a smooth and orderly transition that would help to sustain the bank's momentum. By accepting the part-time role of chairman, Mr Barrett is taking a substantial pay cut and will earn a basic salary of £650,000 (€974,413).

This is in contrast to the £3 million in pay and bonuses he received as chief executive for leading the bank to profits of £3.84 billion last year. In addition, he picked up share options worth £831,000 and saw his pension pot topped up by £990,000.

Contractual details released by Barclays also show that Mr Varley will not earn as much as his predecessor. The basic salary of the new chief executive will be £850,000 but this could be doubled under a bonus scheme linked to performance. Mr Varley will also be eligible for an annual grant of £500,000 shares if he meets "very demanding" targets.

Media reports at the weekend said shareholders pushed for an earlier succession after becoming concerned at the year-long wait for Mr Varley to take the top job. - (PA)