Top British firms are continuing to favour internal candidates over external applications, research has revealed.

Most UK plcs prefer choosing existing management for CEO positions, the executive search firm Russell Reynolds Associates has claimed.

Almost three-quarters of CEO appointments in the FTSE-1000 over the last three years were internal promotions.

The practice could stifle the UK's ability to participate at an international level – and spells bad news for headhunters already struggling through the low period in the business cycle.

Firms such as BSkyB, WH Smith and Cable and Wireless have had to open up top appointments to external candidates following shareholder dissatisfaction.