Energy firm BP unveiled the identity of its new chairman yesterday, surprising the market and ending a two-year search for Peter Sutherland’s successor.
The long hunt for the right person to fill one of the UK’s most prestigious corporate jobs ended with the appointment of Carl-Henric Svanberg, the boss of Swedish mobile phone giant Ericsson.
He will take over from Mr Sutherland in January.
The current chairman’s departure was expected last year but delayed by BP not proceeding with the appointment of the initial favourite: thought to be former Rio Tinto chairman Paul Skinner.
US mining and energy executive Paul Anderson was then widely assumed to be the new leading candidate for the role.
BP chief executive Tony Hayward described Mr Svanberg yesterday as a worthy successor to Mr Sutherland, who has served as BP’s chairman since 1997.
Mr Hayward added: “He is a businessman of international stature who is recognised for his transformation of Ericsson.
“Our shared views on many aspects of global business give me great confidence that we will work effectively together on the next phase of BP’s progress.”
Mr Svanberg, 57, will join BP after a seven-year tenure as Ericsson’s chief executive and as chairman of its joint venture Sony Ericsson.
He said he was hugely excited about joining the energy industry, adding: “BP is a recognised world leader in the sector and it’s a great privilege to be invited to lead its board.”
The appointment comes at a challenging time for BP after almost 40% of shareholders voted against its remuneration report at the firm’s annual meeting in April.
Other tasks facing the new chairman include expanding the company’s presence in emerging markets such as China and India, where state-backed energy companies have been reluctant to allow international firms to build dominant positions.
Mr Svanberg joined Ericsson in 2003, when it was struggling in the face of losses and restructuring. Since then, it has grown market share in telecoms equipment, while becoming the world’s fifth largest software firm.
Ericsson chairman Michael Treschow said: “With Carl-Henric Svanberg’s leadership, Ericsson has become the industry’s most profitable company and its market position has been tremendously strengthened.”
Mr Svanberg, from the north of Sweden, is married and has three children.
BP also said yesterday that it had agreed the sale of an offshore oil and gas block in West Java to Indonesian state energy firm Pertamina for just over £170million because the block did not fit in with its long-term strategy.