Compass Group's appointment of Sir Roy Gardner as successor to chairman Sir Francis Mackay has met with a mixed reaction.
Gardner, the current chief executive of utility services group Centrica, will join the Compass board as a non-executive director on 1 October.
He will step into Mackay's shoes some time in 2006 when his successor at Centrica has been found.
Compass Group's share price fell slightly at the news, and one analyst questioned the track record of the former Manchester United chairman.
"He hasn't got a glittering career in turning companies around. Compass really needed someone to deliver shareholder value, and it seems like a bit of a missed opportunity," said the source.
Richard Singleton, director of corporate governance at institutional investor F&C, was more upbeat. "It doesn't leap off the page as fantastic news but it's certainly a positive move. He appears to be the right sort of person for the job, and the signs look good. The sooner he takes over and sets out a strategy for the company, the better."
Compass deputy chairman Peter Cawdron, who led the search for a successor to Mackay, believes that investors will benefit with Gardner's arrival. "He has created enormous value for shareholders at Centrica and brings with him a wealth of knowledge and experience," he said.
by Tom Bill