Sage chief to quit after 16 years at the helm

SAGE, the accountancy software developer, has begun the search for a successor to one of the longest-serving chief executives of FTSE 100 companies.

Paul Walker is to step down after 16 years at the helm, it was confirmed yesterday. Sage has hired head-hunter Russell Reynolds Associates to look at both internal and external candidates.

A spokesman declined to say how long the process of finding a successor might take, but said Walker and the rest of the board would work to ensure a "seamless transition".

Internal candidates include finance director Paul Harrison and Paul Stobart, who runs the group's UK and Ireland business.

Walker, 52, helped build the business through a series of acquisitions, and has reportedly told the board that he wants to move on while young enough for fresh challenges.

His 16-year tenure is exceeded by Sir Martin Sorrell at advertising giant WPP and Tullow Oil's Aidan Heavey.

Walker joined Newcastle-based Sage as company accountant when the business was just three years old. He was appointed finance director in 1987 and worked on the flotation of the firm on the London Stock Exchange two years later.

The group, which supplies business management software and services to six million customers worldwide, is now worth more than 3.3 billion. Its customer base is mainly made up of firms in the small to medium-sized enterprise sector. The company employs 13,400 people around the globe.

Panmure Gordon analyst George O'Connor said he believed Walker had chosen a good time to move on. "He leaves Sage in great shape, having fared very well through the downturn and the new boots – be that an internal or external candidate – will arrive as the recovery is on a stronger footing and will be able to more easily drive growth through Sage," he said.