The new chairman will start work in January

Simon Robertson, 63, president of Goldman Sachs Europe, used to be chairman of broker Kleinwort Benson.

He will take over from Lord Moore of Lower Marsh who served in the post after Euan Baird was forced to retire in 2003 due to ill health.

Mr Robertson will take up the chairmanship of Rolls-Royce at the end of the year.

Major employer

The company has also appointed Sir John Taylor to its board as a non-executive director.

He was previously director of Hewlett Packard's European Research Laboratories and currently chairman of Roke Manor Research Limited.

The Derby-based manufacturer makes aero engines and marine engines and has operations in Bristol and Nottinghamshire.

It employs more than 21,000 people across the UK.