Mr Quinn, a five-year executive, is leaving HSBC to seek a better work-life balance. Photo: Yves Herman/REUTERS
HSBC has launched a search for a new chief executive after Noel Quinn unexpectedly resigned to seek a better work-life balance.
Mr Quinn's resignation after five years years of leadership at the lender sparked a battle for a successor at one of the world's largest banks. It comes at a politically sensitive time for the bank as HSBC becomes increasingly torn between its British headquarters and its profit center in China.
HSBC chairman Mark Tucker said the bank would be looking internally and externally for a replacement for Mr Quinn, who has led the lender since 2019 and was paid £10 million a year as chief executive.
City Sources reported that HSBC financed Chief Georges Elkhedery was the favorite to replace the 62-year-old president. He was promoted to chief financial officer last year and Mr Quinn said at the time that Mr Elkhedery's appointment was part of the bank's succession planning.
HSBC chief financial officer Georges Elkhedery is among the leading candidates to replace Mr Quinn
Mr Elkhedery, a 50-year-old Frenchman, recently took a sabbatical to learn Chinese, a sign he is being groomed for the top job.< /p >
HSBC's head of wealth management Nuno Matos and global commercial bank head Barry O'Byrne, who head the bank's largest divisions, are also leading candidates for the post.
Citi analysts named Lloyds Bank chief Charlie Nunn, OCBC Bank chief Helen Wong and former Standard Chartered banker Simon Cooper as other potential suitors. Hiring an outsider would go against HSBC's tradition of promoting from within its ranks. However, all three outsiders identified by Citi as potential candidates previously held senior positions at HSBC.
Citi analysts also named Lloyds Bank chief executive Charlie Nunn as a potential candidate. Photo: Holly Adams/Bloomberg News
Shore Capital analyst Gary Greenwood said: “HSBC has always been a huge bureaucracy. You need a politician who can come and sort this out. An internal candidate will have more knowledge of the inner workings of HSBC.”
HSBC is worth almost £150 billion and employs more than 221,000 people in 64 different countries. With assets of $3 trillion, the bank is almost equal in GDP to the entire British economy.
HSBC's sprawling nature and deep roots in both China and the West have made it increasingly politically vulnerable as tensions between China and the West increase.
The battle over a successor could again increase pressure on the bank to change of power. more of its operations into Asia or promote an Asian banker to the post of CEO.
Chinese insurance giant Ping An, which is HSBC's largest investor, has previously raised concerns about a shortage of Asian executives. business side.
HSBC's senior executives in Asia are Surendra Rocha and David Liao, who co-head the bank's Asia-Pacific business. Mr Rocha is originally from India and Mr Liao was born in Hong Kong.
Ping An, which owns 8.8% of the bank, previously launched an unsuccessful campaign to break up the bank and spin off its Asian business.< /p>
A source said the group's headquarters were “non-negotiable.”
Quilter Cheviot equity analyst Will Howlett said the bank's financial performance was likely to meet any demands for change from investors. .
He said: “Profits are strong at the moment thanks to higher rates and they have done the hard work in terms of pivoting towards Asia. I think they are doing enough.”
The bank has not formally hired headhunters, but has previously used Russell Reynolds for its senior executive search process. HSBC declined to comment on the possible appointments.
In announcing his decision to step down, Mr Quinn said he wanted to “provide a better balance for me personally and for my family so I can spend more time with them.” .
He added: “When doing this job, you have to give 100%, if not 120% of your energy, your thinking and your time to this role.”
The source added: “People underestimate how taxing the bank's activities are, especially given the level of regulation. It takes its own toll.”
Mr Tucker said: “The process has just begun, although the succession process has been going on for many years. We aim to complete this by the second half of this year.”
Mr Quinn is the first to take over as interim chief executive of HSBC after his predecessor John Flint lasted just 18 months in the post.
Mr Quinn oversaw a sweeping restructuring of the bank that included cutting 35,000 jobs in 2020 as part of efforts to “simplify” its business and improve productivity. Under his leadership, HSBC has also shifted its focus to China as it seeks to accelerate growth.
He will officially remain in his post until April 2025, but will step back once a new chief executive is appointed.
He will officially remain in his post until April 2025.
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The Birmingham banker joined the then Midland Bank in 1987 and rose through the ranks in the 1990s before heading up the commercial bank in Hong Kong in the mid-2000s.
< p>HSBC made record profits last year and its dividends and share buybacks hit 10-year highs. Mr Quinn said it was a good time to leave.
The news of his retirement comes as the bank announced pre-tax profits fell by $200m (£160m) to $12.7 billion in the first quarter of 2024. .
The bank's shares rose 4.1% in London on Tuesday.
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