Unilever today said Patrick Cescau is stepping down as chief executive at the end of the year to be replaced by Nestlé vice president Paul Polman.

Cescau, who is 60 this month, is retiring after 35 years at the consumer goods giant including nearly four as chief executive.

He will be succeeded by 52-year-old Polman, who joined Nestlé in 2006 as finance director following a 26-year career at Procter & Gamble where he became group president. The Unilever job is one of the best-paid in the corporate world and Cescau last year took home £3.7 million.

Polman, in charge of Nestlé's American operations since February, was tipped for the top job at Nestlé but missed out when Paul Bulcke was made chief executive earlier this year.

One City analyst today said Polman, a charismatic Dutchman with a frank management style, was "extremely highly regarded" and welcomed his appointment.

"He was thought to be getting the top job at Nestlé and the market was disappointed he didn't," said the analyst. "There is no question - he is the right man for Unilever."

Unilever shares rose 93p to 1583p today, valuing the firm at over £19 billion. Brands include Vaseline, Dove, Domestos and Hellmann's.

Chairman Michael Treschow said: "We are very pleased to welcome Paul Polman. He is a great talent with significant international experience and an excellent track record." Cescau is a reluctant public figure who has been sensitive to criticism that sales growth at Unilever has lagged behind competitors such as Proctor & Gamble and Nestlé.

But he is credited with streamlining the firm, which was long seen as one of the industry's most conservatively managed and bureaucratic companies. He said: "Four years ago we set out to transform Unilever and to get the business back on track. I believe that phase of work is largely complete, so now is exactly the right time to pass on the baton."

Analysts said that Cescau was highly regarded in the City. Warren Ackerman of Dresdner Kleinwort said: "This company was on its knees in 2004. He simplified the business hugely."