British financial services firm Barclays has named Bob Diamond as its next CEO. He will replace John Varley after the incumbent steps down on 31 March 2011.

Diamond, who joined Barclays in 1996, currently serves as president and CEO of the firm’s investment arm Barclays Capital.

Diamond, who will be paid an annual salary of £1.35m, is presently based in New York, but will relocate to London to take up his new responsibility.

According to reports chairman of HSBC Stephen Green will also leave the firm to become trade minister in the UK Government.