Young's share price jumped by 40.5 points to a high of 1,220 points at 1.30pm shortly after the announcement.
Goodyear will hand over to Patrick Dardis, who is currently the company's retail director, after the company's annual meeting this July. Dardis joined Young's in 2002 and took up a position on the board a year later.
Goodyear, who will remain on the group's board as a non-executive director, joined Young’s in 1995 and became chief executive in 2003.
"This change represents a smooth and effective succession plan. In Patrick, we have a very well qualified successor to Steve as Chief Executive. Having undertaken a thorough review of potential candidates, including externally, it was very clear that Patrick, having been intrinsically involved in our success over the last 10 years, was the right person," chairman Nicholas Bryan said.
"He knows our business inside out, is already responsible for the managed estates of both Young’s and Geronimo and is very well respected in the industry. The company will continue to benefit from his passion, drive and commitment as we grow and develop further."