LONDON, Sept. 7 (UPI) -- British banking giant Barclays Tuesday said Robert Diamond will replace Chief Executive Officer John Varley at the end of March.

Diamond, currently head of Barclays' investment banking operations, will serve as president and deputy chief executive for the bank beginning Oct. 1. When Diamond takes over as CEO in March, Varley will become his chief adviser for a six-month term, the bank said.

Chairman Marcus Agius said he was "delighted" with the selection. In a statement, Agius said Diamond was "superbly qualified with more than 30 years experience in the banking sector."

The New York Times reported Diamond would be paid a salary of $2 million with annual bonuses that could equal 250 percent of that.

Diamond, an American who headed Barclays' purchase of Lehman Bros.' North American investment banking business in 2008, is viewed as a charismatic man who has done enormously well within the bank's bonus system, earning a combined $55 million in bonus pay for 2006 and 2007, the Times said.