HSBC steps up hunt for a new leader

HSBC (0005) is expected to pick its new chief executive from a crop of internal candidates, with an announcement possible as soon as this month.

As HSBC prepares to name its third CEO in nine years, the bank is exploring financial incentives and reallocating key projects to retain those who miss out on the top job, two other people with knowledge of the discussions said.

Europe's biggest bank could reassign its technology transformation and innovation strategy, currently overseen by chief executive Noel Quinn, away from his successor, the people said. The nominations committee is expected to choose from a cluster of executives that includes chief financial officer Georges Elhedery, wealth business head Nuno Matos, Europe boss Colin Bell, and investment bank chief Greg Guyett, according to media reports.

The bank is keen to retain top talent after a string of internal changes and as it faces challenges - including tensions between Britain and China, its key markets - and a lackluster share price performance.

Three shareholders, including two of HSBC's 20 largest, said they are concerned the CEO appointment could lead to more management upheaval. Picking Elhedery as CEO, for example, would see the CFO role occupied by a third person in less than three years.

"Promotions do leave gaps elsewhere, and that merry-go-round can be problematic if not handled well," one of the investors said.

The reassigned projects could come with significant pay incentives as they represent the majority of the weighting in Quinn's key performance indicators, HSBC's remuneration report shows.

Quinn's total pay package doubled in 2023 from the previous year to 10 million (HK$100 million).

"HSBC is conducting a robust and rigorous process to find its next chief executive. This process will consider internal and external candidates. We will update the market as appropriate," a spokesperson said.

REUTERS