LONDON, APR 13: British banking group Barclays Plc shocked the stock market on Tuesday by announcing the resignation of its new chief executive Michael O'Neill on health grounds, barely two months after he was named to the top post.O'Neill, a Californian ex-marine, was appointed to head the bank following last year's surprise resignation of Martin Taylor. He had been charged with turning around the group's fortunes after a series of recent setbacks.Barclays said O'Neill would not receive any pay-off. He was expected to take up his job on March 26 but the bank said he never actually made it to his desk. The bank said it became evident late last week that complications had arisen from a an irregular heart beat discovered after O'Neill's recent bout of influenza. "Following further confirmatory medical tests in London yesterday, Barclays has reluctantly agreed with O'Neill that the situation is sufficiently serious that he should not take up his appointment," the bank said.The news immediately hitBarclays's shares which traded 2.3 per cent lower at 18.30 pounds at 0805 GMT. Analysts said the resignation meant investors faced a further wait for a new chief to set the bank's strategic course.Barclays said it had no immediate replacement in mind. "The bank's investors have had to suspend their belief since Taylor's departure and they are going to have to hold on a bit longer now, but other people must have been turned up in the search so may be another replacement won't take that long to find," said Martin Cross, analyst at brokerage Teather & Greenwood.Cross said he did not expect Barclays shares to make much progress until O'Neill's successor was found and a convincing strategy was firmed up. Barclays investors were looking to O'Neill to tackle problems at its investment bank, Barclays Capital, which lost $250 million in Russia last year.Sir Peter Middleton, who was acting chief executive after Taylor's resignation, will take over again as CEO until a permanent replacement for O'Neill takesoffice. ".We will not allow this to distract us from maintaining the momentum of our business and focusing on delivering for our customers and shareholders," he said.
