Mike Turner, the chief executive of BAE Systems, announced his retirement yesterday only months after stating his desire to run the largest European defence company for another six years. His departure comes amid rumours that the BAE board believed that the company needed someone new at the helm to open different markets and change the corporate culture.

Dick Olver, the BAE chairman, acknowledged last night that the board had discussed Mr Turner’s future but insisted that no pressure was put on the chief executive to resign. Mr Turner said that it was entirely his decision to retire next August, when he turns 60.

He said: “I have delivered what I set out to deliver and I want to move on while I am still young enough to continue a nonexecutive career. I would like to become the chairman of another company.” He will receive 50 per cent of his £945,000 salary and performance-related bonuses worth £2.6 million.

Mr Turner joined Hawker Siddeley as an undergraduate apprentice 41 years ago and has been with British Aerospace ever since. He became chief executive in 2002 and has been responsible for a turnaround in the company’s UK business and the rapid expansion of its operations in the United States. The company’s market value has quadrupled to £17.9 billion since the start of 2003.

Mr Turner’s first job as chief executive was to rescue BAE’s UK operations after problems with the Astute nuclear submarine and Nimrod surveillance aircraft projects. BAE has also acquired 12 businesses in America since 2002 and now draws 50 per cent of its business from the US Department of Defence.

The strength of its US business may force the BAE board to consider an American candidate to replace Mr Turner. This cannot be done at present because the company’s charter requires a British citizen for security reasons. Mr Olver said yesterday that if he considered it appropriate, he would ask the Ministry of Defence to remove this restriction.

Analysts said that the complexity of BAE made an internal candidate more likely to replace Mr Turner. However, the board is understood to want to introduce a new corporate culture after years of bribery and corruption allegations against the company. This could favour an external appointment, the first in company history.

BAE is under investigation by the US Department of Justice over allegations of corruption in arms deals with Saudi Arabia. A similar Serious Fraud Office (SFO) investigation was shut down by the British Government last year on national security grounds. The SFO has continuing inquiries into BAE arms sales to six foreign countries.

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