Rexam cans chief after five months

REXAM, the world's biggest maker of drinks cans, has axed its chief executive less than five months into the job.

Stefan Angwald, 54, was shown the door today with a pay-off potentially worth more than £1.1m over the next two years. Rexam's board, headed by newly promoted chairman Rolf Borjesson, said: 'The board has regrettably concluded that Mr Angwald is not the appropriate individual to lead the company and has therefore asked him to step down.'

Angwald joined Rexam in January from Sweden's SCA Hygiene, where he was chief executive. He took over the Rexam job after five months shadowing Borjesson and was on a two-year contract worth a basic £550,000 a year.

Corporate governance best practice recommends directors of large UK public companies are employed on a maximum of one year's notice.

A company source said Rexam will pay Angwald's salary monthly for the two years unless he takes another job in the meantime. Angwald's contract also includes the right to pension contributions worth up to 50% of his salary.

Rexam insiders said Angwald's departure was a result of a clash in leadership style rather than any company operational problems.

His replacement will be Lars Emilson, Rexam's group director in charge of drinks cans.