Barclays PLC announced on Tuesday that executive Robert E. Diamond Jr. will replace John Varley as chief executive officer next year. The shake-up will take place on March 31, 2011.

However, a few changes will occur before next year, with Diamond serving as president and deputy group chief executive on Oct. 1, 2010.

During the transition, Varley will serve as senior advisor on regulatory issues to Diamond and the board, until September, 2011. He has been CEO of the company since September, 2004.

Diamond is currently the head of corporate and investment banking at Barclays, and also oversees the bank's Wealth division. He has been a member of the board since 2005, and has been working at the company since 1996.

As of Jan. 1, 2011, Diamond's salary will increase to $2.07 million and his annual bonus could be up to 250% of that amount.