Director’s illness puts Leeds’ succession plans into doubt

David Pickersgill, finance director and deputy chief executive, had been due to take over at the helm on January 1 but has been away from his desk since last year. It has led Mr Ward to postpone his retirement for the second time, having stayed on to steer the mutual through the financial crisis.

Now the Leeds has advertised for a new chief executive in case Mr Pickersgill is unable to take on the job. His appointment had been announced in May last year.

Contenders for the post could include Peter Hill, the operations director, and Kim Rebecchi, sales and marketing director and the first woman to serve on the executive board of the building society.

It has engaged the Leeds branch of executive recruitment firm Wheale Thomas Hodgins for the hiring process.

An advert for the post specifies the need for someone with “leadership and values” and boardroom experience in a major financial services company, ideally of at least five years.

A spokesman for the Leeds said: “It is a legal requirement that the society has a chief executive and, therefore, the board has initiated a recruitment process for this position, in the event that David is not able to succeed Ian Ward. Ian will continue as chief executive until this post is filled.”

No details have been released about Mr Pickersgill’s condition, or of when a decision will be made about his future. Mr Ward has been credited for his performance over more than 15 years as chief executive. During his tenure the Leeds has grown nearly fourfold and remained profitable despite the financial crisis and record low interest rates.

The building society moved into commercial property a year ago when it rescued Hornsea Freeport, an East Yorkshire shopping village, from administration.

It set up a wholly owned subsidiary, Headrow Commercial Property Services, to carry out the deal for Hornsea, the owners of which were believed to have previously taken out a loan with the mutual.

Mr Ward has also been a consistent critic of the level of contributions the mutual sector has been forced to make to the Financial Services Compensation Scheme, which compensated depositors who lost money with the collapse of Bradford & Bingley and the Icelandic banks.

Two years ago he described the system as “daylight robbery” and has he called on the coalition Government to “be fair” to mutuals.