Fund managers and senior financial advisers have attacked the way companies hunt for new chairmen, following the unpopular appointment of Sir Ian Prosser as chairman designate at J Sainsbury, the UK supermarket chain.

They said companies should instruct headhunters and non-executive directors to broaden their terms of search, instead of drawing up lists of the same established names. One senior banker said: "This really is an example of Buggins' turn again. The problem is that the headhunters just keeping looking at the same old group of people. It was an unimaginative and dull appointment and I simply don't believe that there aren't better businessmen and women out there."