Former Cabinet secretary Lord O’Donnell of Clapham has emerged as a surprise possible replacement for King despite having never worked at the Bank.
According to the Telegraph, Lord O’Donnell – who as Sir Gus O’Donnell was known by his initials ‘GOD’ by civil servants – is being talked about in Westminster as a serious contender.
A replacement for the £300,000 a year post will be announced in November, following a lengthy selection process, before King – who has served for 10 years as governor – steps down next June.
Lord O’Donnell spent three decades in government, including stints representing Britain at the International Monetary Fund and World Bank.
At the Treasury, he was head of the government’s economics service and managing director of macroeconomic policy.
Most recently, he served as Cabinet Secretary and head of the Home Civil Service under three prime ministers between 2005 and 2011.
Chancellor George Osborne is due to unveil the recruitment process to find a successor in June, with a long-list drawn up in August and September.
In the past, chancellors have tended to appoint deputy governors to the top job – both King and Eddie George were deputies before they were appointed.
Paul Tucker, King’s current deputy, is the clear overall favourite, and is seen as a “safe” choice for the City.
Other external candidates include Lord Adair Turner, the former head of the CBI and chairman of the Financial Services Authority, and John Vickers, the former chairman of the Independent Commission on Banking.
Paddy Power has Turner at 5/2, up from 11/4 a couple of weeks ago, while Tucker is at the same odds. O’Donnell is at 14/1, making him the fifth favourite.
