Shares in Edinburgh-based Cairn Energy fell more than 2% after the oil and gas exploration firm revealed founder Sir Bill Gammell is to step down.
The former Scottish rugby international is one of the country’s most recognisable business figures and is playing a key role in the organisation of the Commonwealth Games in Glasgow, as a director of the body tasked with putting on the event.
Sir Bill, 61, who lives in Edinburgh but also has a home in the Angus Glens, was chief executive of Cairn from 1988 to 2011 and has spent the last three years as non-executive chairman.
Under his guidance Cairn came to be one Scotland’s largest companies by market capitalisation and achieved a listing in the FTSE 100 index of blue-chip firms.
Cairn is currently listed in the FTSE 250 index, with Sir Bill personally holding 596,331 shares, representing around 0.1% of the firm’s overall issued capital.
“I am proud of Cairn’s many achievements during my tenure as founder, CEO, and subsequently chairman, and as a shareholder I look forward to further progress,” Sir Bill said.
“After 25 years on the board, I am pleased to be leaving in the knowledge that the board and the company will remain in highly capable hands.”
He will be succeeded following the company’s general meeting on May 15 by former Balfour Beatty chief executive Ian Tyler, who joined the Cairn board last June in a non-executive director capacity.
He also holds a number of other non-executive positions including chairman of the Al Noor Hospitals group and of Bovis Homes.
Cairn’s board, led by senior independent director Iain McLaren, chose Mr Tyler for the role due to his extensive experience in working with limited companies in a number of countries.
Company chief executive Simon Thomson said Sir Bill’s departure was a milestone for the firm.
“Bill has been an exceptional leader and leaves a lasting legacy at Cairn,” said Mr Thomson.
“His role in the company’s growth over 25 years has delivered significant value to shareholders. I am delighted that Ian Tyler has agreed to become our new chairman, given his extensive listed company and non-executive experience.”
Mr Tyler said that he was delighted to have been appointed as Cairn’s new chairman.
He said: “This is an exciting and challenging time for Cairn and I look forward to working with Simon, his management team and the board as we continue to seek to create and deliver material value for shareholders.”
Shares in Cairn closed the day down 4.90p at 193.90p.