Construction and contract mining giant Leighton Holdings Ltd (ASX: LEI) will soon miss its chief executive for 23 years as Wal King announced on Monday that he would be retiring from the company effective January 1 of next year.

Company chairman David Mortimer said that Mr King would leave behind a lasting legacy in Leighton as he noted that under the chief executive's watch, "Leighton has risen from being a middle ranking Australian construction company to a global leader as a contractor and the world's largest contract miner."

Mr Mortimer said that current Leighton chief operating officer has been tapped to assume the position set to be vacated by Mr King, adding that the retiring chief executive would leave the company much prouder as Leighton was recently ranked by Engineering News Record as the 12th largest contractor by revenue in the world.

Leighton's revenue ballooned from $1.4 billion in 1987 to its present figures of up to $18.6 billion and in the process became Australia's highest earning chief executive last year, fetching a take home pay of $12.6 million.

The company flatly denied allegations that the outgoing chief executing is on his way out following his statement carried by The Australian last month, in which Mr King allegedly declared that some international investors regarded him as the foremost chief executive officer in Australia.

At the same time, Leighton said that while it was saddened by Mr King's imminent departure, the prospect of a new brand of leadership to be infused by Mr Stewart has created an exciting environment in the company.

Mr Mortimer said that Mr Stewart's ascension has been preceded by the careful and comprehensive succession process undertaken by Leighton as he stressed that "we are proud of the quality of management talent that was available to succeed Mr King."