HSBC searches for chairman in advance of new chief executive
HSBC has started the search for a new chairman who it hopes will join the bank next year, in time to help pick a new chief executive to replace Stuart Gulliver.
Douglas Flint, who has chaired the bank since a boardroom battle in 2010, said he will stay on until his replacement is found.
“The board aims to nominate my successor during 2017 but the exact timing is clearly dependent upon identifying and securing the appropriate candidate. My own commitment is to remain as long as necessary to ensure a smooth transition,” said Mr Flint in a letter to shareholders ahead of the bank’s annual meeting. A month after the bank decided to keep its headquarters in London rather than move to Asia, HSBC is now preparing for a changing of the guard in its top team. Mr Gulliver has already signalled his plan to step down in two years’ time and the group intends to choose an external candidate to replace Mr Flint, in a break with tradition.
Both executives have been with the bank for several decades and have been at the helm during the post-financial crisis attempts to slash jobs and address the consequences of scandals including a $1.9bn fine for failing to tackle money laundering in the US and Mexico.
In the bank’s annual results last month, profits slumped 7pc to $20.4bn (£14.4bn) on rising wage costs and rising losses on loans.
The bank is also asking shareholders at its annual meeting in April to give it permission to launch more contingent convertible securities, a new form of debt that converts into equity if the firm becomes distressed.