HSBC chairman preparing to step down, report claims
HSBC chairman Stephen Green is preparing to stand down from the helm of Britain’s biggest bank later this year as part of a board overhaul, it was reported today.
Mr Green, 61, is understood to be planning his departure as part of a succession strategy that will see HSBC end a long-running tradition to appoint an executive chairman at the top, according to The Sunday Telegraph.
It is thought his replacement will be hired as a non-executive, with incoming remuneration committee head John Thornton, 56, tipped to be a front-runner.
A spokesman for HSBC said it was "silly to speculate" on any succession strategy for Mr Green. He added: “Of course we have succession plans for key positions.”
HSBC has reportedly been implementing a succession plan for the past year that started with Mr Green relinquishing his responsibility for group strategy to chief executive Michael Geoghegan last September.
The bank is expected to lead a formal search for candidates both internally and externally, although non-executive director Mr Thornton – former President of Goldman Sachs – is seen as a preferred candidate.
Senior independent non-executive director Simon Robertson, 68, is also thought to be a potential candidate to become chairman, altough HSBC was not immediately available for comment.
Mr Green has been chairman since 2006, having previously acted as chief executive for three years.
Today’s report comes ahead of HSBC’s annual shareholder meeting on Friday, which is expected to see the bank face tough questions over executive pay.
Shareholder advisory group Pirc has recommended investors oppose its remuneration report over concerns.
At the heart of much investor unrest is the £800,000 award to cover Mr Geoghegan’s relocation costs to Hong Kong, which has since overshadowed the news that he gave up a £4 million bonus to charity.
