Richard Boot stepped into instant controversy yesterday as he was named the next chairman of the IoD West Midlands region.

A row has developed over how businesswoman Beverley Nielsen – supposedly earmarked for the role – has been overlooked. Mr Boot succeeds John James, who has stepped down after 18 months of the two-year appointment.

But Mr James said he was "confused and bemused" at the move to snub Ms Nielsen, the current vice chairman, given she had been "implicitly endorsed" for the top job.

He said Ms Nielsen's succession had even been announced in the November edition of the IoD's Midland Director magazine.

"It was known she had been appointed vice chairman with the specific intention of succeeding me," he added.

Ms Nielsen was in her forties, a woman, from a retail and manufacturing background rather than the traditional professional services one, and from Malvern – all areas frequently under-represented in the IoD. She was former regional director of the CBI and a director of Aga.

Mr James stressed he had nothing against Mr Boot who was "a very credible candidate to be chairman" with an excellent track record.

"However it sends mixed messages to our members," cautioned Mr James, saying no reason had been given for the change of direction.

Ms Nielsen said: "I was appointed vice chairman on the understanding I would succeed Mr James" and was "surprised" to find out this was now not the case and "sorry" to have learned about it in the way she had. She was also "unclear" about her vice chairmanship.

IoD regional director John Phillips said Ms Nielsen was a very talented woman, but it was "not the case that the vice chairman automatically becomes chairman. Like any selection process, it is the the best person for the job."

He added: "I am delighted that Richard has agreed to take up this important role. Richard and his partners gave the IoD a small office base at KPMG in 1993 and it was from this modest beginning that we have grown to be the major force supporting directors in the West Midlands. I can think of no better person to lead our organisation."

Mr Boot is chairman of recruitment and advisory firm Active Human Capital, deputy chairman of investment bank Kaupthing Singer & Friedlander in the Midlands and non-executive chairman of KPMG’s UK automotive practice.