Diamond’s key lieutenants to step down at Barclays

Tom Kalaris, head of Barclays’ wealth management business, will also leave. Both Mr Ricci and Mr Kalaris were key lieutenants of Mr Diamond, who left after the Libor interest rate rigging scandal last summer.

Speculation intensified that Mr Ricci, one of the highest paid bankers at Barclays, would go after the CEO failed to publicly back him when he unveiled a new strategy in February.

Barclays insisted that Ricci had the support of the bank, but scrutiny intensified after he sold shares worth more than £17m last month straight after receiving them as part of previous deferred bonuses or long-term awards.

Mr Ricci’s pay does not have to be disclosed as he is not on the board, but he has long been one of the highest paid people at Barclays.

He was paid £10.6m and awarded shares worth another £17.3m for 2010 alone and owns a number of top racehorses based in Ireland. One horse is named Fatcatinthehat.

Mr Ricci joined Barclays in 1994 and led its acquisition of Lehman Brothers in 2008, becoming co-head of investment banking in 2009 and sole head of corporate and investment banking last June. Barclays said he will step down as boss at the end of this month and retire from Barclays at the end of June.

Mr Kalaris will also leave on June 30.

Mr Jenkins said: “We are very grateful to Rich for his major contribution to Barclays over the past 19 years, during which time he has played a significant role in building our investment bank into the success it is today. We wish him well for his retirement.”

He added: “Tom Kalaris has made a huge contribution to the bank in a variety of senior roles over the past 16 years, including most recently overseeing the growth in wealth and investment management since 2006, and as executive chairman of the Americas over the past year, where he has led the first phase of the integration of our business in the region.”

Barclays said Eric Bommensath and Tom King would become co-chief executives of corporate and investment banking from May 1.

The bank added that Mr Ricci and Mr Kalaris will receive up to one year’s base salary over the course of their notice periods.

Neither will receive any severance payment related to their departure from the bank, it said.

Earlier this month, a report commissioned by Barclays said its investment banking leaders were ambiguous about right and wrong.

The Salz review said the bank needs to rein in pay for top staff and tighten control of its operations to repair its reputation after a string of scandals.

Barclays described the report as “uncomfortable reading”. The bank employs around 140,000 people in 50 countries, including 3,000 in Yorkshire.