Unilever has named Paul Polman, Nestlé's US head and a former Proctor & Gamble veteran, as its new chief executive, ahead of four internal candidates vying for the top job at the Anglo-Dutch consumer giant.

Mr Polman will replace Patrick Cescau, who has been with Unilever for 35 years and is due to retire from the group at the end of the year.

Today's appointment of an outsider to the chief executive role was welcomed by Unilever's investors, who sent shares in the company up 5.9 per cent to £15.55.

There had been expectations that the company would seek its new chief executive internally, and four candidates emerged in recent months as the strongest contenders.

They included Jim Lawrence, chief financial officer, who joined last year from General Mills, the US food giant, and Harish Manwani, who leads Unilever's operations in Asia, Africa and Central and Eastern Europe.

Vindi Banga, president of Unilever's foods, home and personal care business, was also in the running, alongside Mike Polk, head of the company's US division.

After 26 years at Unilever's rival, Proctor & Gamble, Mr Polman spent just two years at Nestlé, where he was understood to have been a front runner to succeed chief executive, Peter Brabeck-Letmathe.

However, Paul Bulcke, director of the food group's American operation was appointed to the top job and Mr Polman stepped into his vacant role.

Mr Cescau, who is 60, is expected to retire at the end of this year after joining Unilever in 1973. He was appointed as the chairman of Unilever plc and deputy chairman of Unilever’s Dutch entity in October 2004 when the company operated a dual- board structure.

Unilever changed its management structure in April 2005 to one with a single non-executive chairman and a single chief executive.

Unilever's share price has since risen by 43.8 per cent and Mr Cescau is credited with turning the company around under one structure.

He said today: "Four years ago we set out to transform Unilever and to get the business back on track. I believe that phase of work is largely complete, so now is exactly the right time to pass on the baton."

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