Barclays wants industry insider to replace Taylor

BARCLAYS BANK has asked City headhunting firm Spencer Stuart to lead the search for a replacement for Martin Taylor, whose surprise resignation as chief executive rocked the City last week.

Sir Nigel Mobbs, the senior Barclays non-executive director who played a key role in the events surrounding Mr Taylor's resignation, said yesterday that it was the board's duty to cast its net far and wide. But he also indicated that the clear preference of the board was for a banker rather than another candidate like Mr Taylor who came from outside the industry.

"The job of the board is to have a wide-ranging search. We are looking for someone who is a significant leader with banking experience," he said.

A meeting between representatives of Spencer Stuart and Andrew Buxton, the Barclays chairman, has been scheduled for early this week.

Sir Nigel's remarks would appear to rule out Keith Oates, the Marks & Spencer deputy chairman who lost out in the power struggle at the high street retailer last week and whose name surfaced as a potential candidate at the weekend.

Sir Nigel also cast doubt on the suitability of John Varley, the well regarded head of Barclays Global Investors, Barclays investment arm, who has also been mentioned as a possible chief executive over the last few days.

"We have some very good talent but they may not be ready for a job at that level," he said.

Sir Nigel, who is the chairman of property group Slough Estates, rejected suggestions that Sir Peter Middleton, who has stepped into the breach, had been put in to secure a quick merger with another financial institution. He rejected suggestions that a deal with either Halifax or Lloyds-TSB, both of whom have surfaced as potential bidders since Mr Taylor left, would be in the bank's interest.

"I don't think that is necessarily the solution. We should not overreact to anything. Sir Peter Middleton needs a bit of time to review the options," he said.

However, Sir Nigel admitted that if the situation was still seen to be drifting in six months' time, Barclays would clearly be vulnerable.

"If that is still the situation in six months' time we will have to deal with it as it arrives," he said.

He added: "The business is really going very well. We have some excellent management. All financial institutions are going through a period of reappraisal; that is not unique to Barclays."

Sir Nigel also cast doubt on weekend accounts of the drama that led to Mr Taylor's departure. He described reports that the rift between the board and Mr Taylor stemmed from a clash a year ago with non-executive director Nigel Rudd over the BZW sale as one of the "more fictional elements".

City sources said last night that both Jon Foulds, the Halifax chairman, and Lloyd's Sir Brian Pitman will be watching developments closely to see if there is an opening that would allow them to make a successful bid approach. However, they warned that Sir Peter "was no pushover," and that the board believed that Barclays was a "great bank and should remain so" and was not about to surrender the bank's independence.

A key priority for Sir Peter will be to end the uncertainty that has plagued Barclays Capital, Barclays' bond trading business, since the Russian crisis. The group yesterday denied reports of a major cull but admitted that "it is no secret that there are strategic issues at Barclays Capital which have to be addressed".