Britain's Imperial Chemicals Industries (ICI) said on Wednesday its chief executive Mr Brendan O'Neill has resigned with immediate effect, a little over two weeks after it issued a profit warning that crushed its shares.
The maker of Dulux paints and one of Britain's proudest corporate names said Mr John McAdam, currently head of ICI Paints, was replacing Mr O'Neill with immediate effect.
Mr O'Neill joined the company in 1998. ICI has been battling in recent times against an economic downturn that has cut demand from customers. It made an £808 million sterling ($1.25 billion) rights issue last year to cut a debt burden that has concerned some shareholders.
"In consultation with the board, Brendan has agreed that in the best interests of the company he should step aside," ICI Chairman Lord Trotman said in a statement.
Mr O'Neill's departure comes as ICI has been facing poor trading at its Quest food flavourings unit and rising raw material costs at its National Starch business, which makes adhesives and food thickeners.
National Starch accounts for 30 per cent of ICI's sales, while Quest accounts for 12 per cent.