Ex-Diageo Chief Walsh In Line For Top CBI Job

The UK's biggest employers' lobbying group is lining up Paul Walsh, the former chief executive of Diageo (LSE: DGE.L - news) , as its next president.

Sky News has learnt that the CBI is in discussions with Paul Walsh about replacing Sir Mike Rake in one of the most prestigious roles in British business when his term expires in June.

The talks with Mr Walsh, who stepped down from Diageo in 2013, are at an advanced stage but have not yet resulted in a formal offer of the role, an insider said on Friday.

The appointment of a new president is subject to formal approval from the CBI's board and a number of the organisation's committees.

Mr Walsh, who is now chairman of Compass, the catering group, and a director of the parent company of Formula One motor racing, would be regarded as a credible choice for the CBI presidency during what could be a defining period for the UK.

Depending upon the outcome of May's General Election, Sir Mike's successor at the CBI may have to steer the group through an in-out referendum on the UK's membership of the European Union.

A decision about its new president may not be announced until April, just weeks ahead of the Election.

CBI presidents are appointed for a two-year term and provide one of the most important interfaces between business and politics in Britain.

Sir Mike, a vocal critic of Government intervention in markets, has been outspoken in his support of the UK's continued involvement in Europe.

His predecessor, Sir Roger Carr, the former chairman of Cadbury and Centrica (LSE: CNA.L - news) , was at the forefront of similar debates.

Mr Walsh, a former member of David Cameron's Business Advisory Group and UK Business Ambassador, also serves on the boards of companies including Fed-Ex, the delivery group, RM2, a pallet-maker, and Unilever (NYSE: UL - news) , the consumer goods giant.

Prior to stepping down at Diageo, Mr Walsh was quoted on the subject of the EU as saying that Mr Cameron was “right to seek a new settlement to take account of the different needs of the Eurozone and of those countries, like the UK, which will be in the single market”.

The CBI has itself been going through a period of change, moving into new headquarters in the City last year and launching a campaign aimed at demonstrating the efficacy of business as a broader force for good in society.

It ran into some turbulence last year over its role ahead of the Scottish independence referendum, although its director-general, John Cridland, is widely regarded to have done a capable job since taking on the role in 2010.

The CBI declined to comment on the process of appointing a new president, while Mr Walsh could not be reached for comment.