Ladbrokes chairman Peter Erskine follows his chief executive Richard Glynn out of the door

Peter Erskine, who hired the much-criticised Richard Glynn in 2010 on a multimillion-pound pay deal, made his statement shortly before the shareholder meeting

Peter Erskine, who hired the much-criticised Richard Glynn in 2010 on a multimillion-pound pay deal, made his statement shortly before the shareholder meeting (ALBERT GEA/Reuters/Corbis)

The chairman of the struggling bookmaker Ladbrokes abruptly announced his departure, just weeks after replacing the chief executive.

Peter Erskine, who hired the much-criticised Richard Glynn in 2010 on a multimillion-pound pay deal, made his statement shortly before the shareholder meeting. The move means his selection of a new chief will be the last big act at Ladbrokes during his controversial six-year tenure.

“It is the right time for there to be a change in chairman to one who will be able to see out the entirety of the next stage of the journey,” he said.

When Mr Erskine arrived, Ladbrokes was suffering badly from having failed to invest adequately in online gambling, which even then was growing rapidly. A raft of new rivals were taking its market share, as were savvier established players like William Hill and Paddy Power.

He hired Mr Glynn but a sluggish transformation meant Ladbrokes had to put out repeated profit warnings over the subsequent years. Its share price suffered accordingly. Eventually, Mr Erskine replaced the chief executive last month with Jim Mullen, Ladbrokes’ online head who had joined the previous year to speed up the division’s turnaround.

Shortly after his decision to step down was announced, Mr Erskine, a telecoms industry veteran, addressed shareholders at the annual general meeting. Many have expressed their irritation that Mr Glynn received a large payoff and guaranteed bonus.

Ladbrokes’ senior non-executive director, John Kelly, who made his fortune in the Gala Coral bookmaking business, will lead the hunt for Mr Erskine’s successor.

Analysts say the successful candidate should be someone with strong experience in dealing with City investors, as this is Mr Mullen’s first chief executive role, meaning he will need good guidance on dealing with investors and analysts.

Meanwhile, as well as building its digital customer numbers, Ladbrokes needs to focus on improving takings from its high-street shops, analysts said.

One of Mr Mullen’s first statements in the job was to distance himself and Ladbrokes from his predecessor’s decision to sign a letter from business leaders to The Daily Telegraph backing the Conservatives. “Our business is to take bets on the general election, not to tell people how to vote,” he said.