FIRSTGROUP has suffered a blow as its chairman John McFarlane is stepping down to take up the same role at Barclays.
The transport group said a search for a replacement is already under way and is being headed by its senior independent director, Drummond Hall.
Mr Hall said: "It is unfortunate that John will be unable to see his tenure through at FirstGroup, but we all understand the importance of the role at Barclays he has been asked to take on."
Dumfries-born Mr McFarlane, a vastly experienced corporate big hitter, had only taken over as FirstGroup chairman from Martin Gilbert in January.
Yesterday Mr McFarlane confirmed he will leave the £250,000-a-year job following the bus and rail operator's annual general meeting in July next year.
He said: "It is with regret that I must take the difficult step of leaving FirstGroup so early in my tenure.
"I am, though, satisfied with the progress we have made in appointing a strong board of directors, in achieving stability, in testing the business plan with the team, and in endorsing the way ahead and we will continue to build on this progress as we go forward.
"I am confident that we will appoint a highly qualified successor and I will work towards ensuring a seamless transition."
Losing Mr McFarlane presents another headache for FirstGroup chief executive Tim O'Toole as he seeks to continue the Aberdeen company's turnaround following its £615 million rights issue last year.
In recent months FirstGroup has lost its Caledonian Sleeper franchise to Serco, seen the Essex Thameside services go to National Express and the Capital Connect contract in London get swallowed up as part of the larger Thameslink award, which was given to Govia.
Mr McFarlane will also step down from his chairman position at insurer Aviva, where he is paid £550,000, in April next year.
However, Aviva has moved quickly to replace him with Sir Adrian Montague, its current senior independent director, moving into the post.
Aviva said: "The board was made aware some time ago of the possibility that John might need to leave earlier than he had anticipated to return to banking.
"The board has nonetheless been able to assure continuity in Aviva's transformation, in making this appointment without hiatus."
Mr McFarlane said: "I am very pleased with the progress Aviva has made, and although it is naturally with some regret that I step down, I am glad to be leaving the company in safe hands."
At Barclays Mr McFarlane will become a non-executive director in January before taking over from Sir David Walker as chairman following the bank's AGM later in the year.
Barclays said it was grateful to Aviva and FirstGroup for agreeing to release Mr McFarlane.
He will be paid an annual fee of £800,000 as Barclays chairman with £100,000 of that being taken in shares.
As a non-executive his annual fee is £250,000 with £30,000 of that being taken in shares.
Barclays said Mr McFarlane's role is expected to be around 80 per cent of a full time equivalent.
His appointment has been approved by the Prudential Regulation Authority and the Financial Conduct Authority.
Sir John Sunderland, who led the process to appoint a new chairman at Barclays, said: "The Barclays board set very challenging requirements for its new chairman and I am very pleased that in John McFarlane we have identified someone who met all of our criteria.
"John is an enormously experienced and respected banker with global experience of both retail and investment banking and he will bring great leadership, integrity and knowledge to the role." The 67-year-old Mr McFarlane added "I am looking forward enormously to joining the Barclays board and to working with my fellow non-executive directors, Antony Jenkins and his leadership team to deliver the strategy that Barclays has committed to and which I fully support.
"Under Sir David's leadership Barclays has made significant progress in putting in place the foundations for sustainable, long term success."
Barclays shares closed up 4.5p, or two per cent, at 230p with FirstGroup down 1.5p to 121.7p and Aviva down 5.5p to 525.5p.
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