Barclays COO Paul Idzik in shock exit

Source: Exec Digital UK

Date :02/05/2008 09:33:32

Paul Idzik (pictured), Barclays’ chief operating officer and one of chief executive John Varley’s key allies said Thursday he had resigned from Britain’s third largest bank.

Mr. Idzik who became Barclays' chief operating officer in November 2004 said he looked forward to “identifying and pursuing" his next challenge.

He has told colleagues he is stepping down because the changes he helped make to the bank’s senior management and corporate structure are largely complete.

Strength

His departure comes at a sensitive time for Barclays, which is facing scrutiny from investors over its exposure to losses from the credit market turmoil. It also faces questions about the strength of its balance sheet and whether it needs a rights issue.

Tensions

Mr. Idzik was considered a powerful unifying force within Barclays and had acted as a peacemaker in the past, according to one person familiar with the situation. His resignation will further fuel concerns about the charged relationship between Mr. Varley and Bob Diamond, Barclays’ president and the head of its powerful investment banking and fund management divisions.

The bank has been beset with speculation about tensions between the two men since Mr. Diamond lost out to Mr. Varley in the race to take over as chief executive in 2003.

Mr. Idzik said he is likely to leave in a couple of months. It understood he is not likely to be replaced.

May 02, 2008