Royal Sun Alliance has hired City headhunter Anna Mann of MWM Consulting to begin the search for a new chairman and a number of new non-executive directors.
RSA will follow in the footsteps of Aviva, the global insurance group, which is in the final stages of appointing a new chairman to replace Lord Sharman.
An announcement on his replacement – Barclays deputy chairman Sir Richard Broadbent is believed to be the main contender – could come as early as Wednesday this week, when the company holds it annual general meeting.
Mr Napier hit the headlines last year when he publicly berated President Obama for his public treatment of BP. He accused the US President of being anti-British and said he had been “prejudicial and personal” in his dealings with the British oil giant following the Deepwater Horizon explosion.
His term of office at the insurer comes up for renewal in 2012, although a final decision has not been taken as to whether he will stand down at that point or remain for another year.
Possible contenders for the role could include John Varley, the former chief executive of Barclays, and Clara Furse, the former chief executive of the London Stock Exchange.
Ms Furse is currently senior independent director of Legal & General, and although often tipped for the chairman’s role there, she is respected for having a good working knowledge of the insurance world.
A source with knowledge of Ms Mann’s appointment said that she is “looking across the piece” ahead of a refresh of the board.
The current board, including Mr Napier, is thought to want to ensure an orderly succession for Mr Napier and the other board members who will be departing. The move is not thought to be a reflection of RSA’s audacious but ultimately unsuccessful £5bn approach to buy Aviva’s general insurance arm last August.
Mr Napier, 68, has been on the RSA board since January 2003, and was appointed chairman two months later, a month before Andy Haste joined as chief executive.
Under corporate governance rules, he will lose his independent status after next year, his ninth year on the board.
Other non-executives who are likely to take their leave from the company include Edward Lea, the senior independent director, and John Maxwell, the former director general of the Automobile Association. Both joined the board in 2003.
In terms of board succession protocol, it is likely that Mr Lea will be replaced sooner rather than later, to allow a new senior independent director to steward the appointment of a new chairman.
It is not the first time Ms Mann has worked with RSA, having worked with the board last year to carry out an evaluation of the board and its committees. The review found that the board is “strong and effective” with a “good relationship” between executive directors and the rest of the board.
Ms Mann, one of the founders of Whitehead Mann, is one of the Square Mile’s pre-eminent headhunters. She was responsible for hiring Gerald Kleisterlee, the former Philips chief executive, to replace Sir John Bond as chairman of Vodafone, and appointing Carl-Henric Svanberg as chairman of BP last year.
Prior to joining RSA, Mr Napier was managing director of Hays, the business services group, and AGB Research, the market research provider.
In addition to chairing RSA, he is also chairman of media group Aegis, and chaired Kelda until its sale to a consortium led by Citigroup in 2008 for £3.04bn.
Source : Telegraph
