Windeler to step down as A & L chief executive

Speculation is mounting that John Windeler will step down as executive chairman of Alliance & Leicester as the mortgage bank moves to appoint a chief executive.

Mr Windeler, who has been running the bank since 1999, is thought to have informally agreed to step back from his current role to become non-executive chairman. Richard Pym, managing director of Alliance & Leicester's retail banking arm, is said to be favourite to take on the role of chief executive.

An announcement on the management shake-up is expected within weeks once details of the bank's succession plans have been finalised.

While a spokesman refused to comment yesterday, A & L has persistently said Mr Windeler would only continue in his current role until a "suitable" chief executive had been found.

Mr Windeler took on the joint role when Peter White, Alliance & Leicester's former chief executive, was ousted in October 1999 over disagreements over his management style.

Mr White, who had been chief executive at Alliance & Leicester for eight years, had made several abortive attempts to merge with rivals. His departure came shortly after A & L's attempt to merge with Bank of Ireland collapsed after the plans were leaked.

Alliance & Leicester, which converted from a mutual building society in 1997, has long been the subject of takeover speculation. Abbey National, which successfully fought off a takeover from Lloyds TSB last year, has been tipped as a likely buyer as has National Australia Bank, which owns Yorkshire and Clydesdale Banks.

But just over a week ago, Alliance & Leicester moved to quash that speculation, saying it remained focused on growing organically as it reported an 11 per cent drop in annual pre-tax profits to £396m. The bank blamed the slide in profits on an £85m investment in developing its business, including expanding its cash machine network, as well as a £13m investment in building its small business banking division.

Alliance & Leicester loses its protection against hostile bids in April. Mr Windeler has rejected suggestions that the bank would be more vulnerable as a result.