Who will be the next CEO of HSBC? An internal candidate looks likely for Europe’s largest bank
HSBC Holdings Plc is leaning towards appointing its next chief executive from a shortlist of internal candidates as the hunt begins for a successor to outgoing boss Noel Quinn.
Chief Financial Officer Georges Elhedery and Nuno Matos, head of wealth and personal banking, are seen as leading replacements for Quinn, who has announced his retirement, according to people familiar with the matter. retired last month. Several people said the bank hired an outside recruitment firm to evaluate them against outside candidates for the job, and asked not to be identified discussing an internal process.
The search is just underway and the board could still go in another direction, the people said. An HSBC spokesman declined to comment.
The internal list is considered strong and helps avoid a lengthy search for Quinn’s replacement given that many external candidates may have to complete garden leave before they can join. Chairman Mark Tucker said he expected to complete the process in the second half of the year.
Quinn announced last month that he would step down, a surprise move that comes as Europe’s largest bank tries to navigate deteriorating relations between China and the United States. During his tenure, Quinn led a series of strategic reviews that culminated in a plan to boost the bank’s investment in its Asia business, while cutting back in markets such as the US and France. .
The company is committed to that strategy going forward, even as tensions continue to flare between Beijing and Washington. An outside candidate would be more likely to want to launch a new strategy, people familiar with the matter said, which would also make the board more inclined to favor internal talent. .
Cultivate talents
Elhedery, 50, took on the CFO role in early 2023. The Lebanese native rose through the ranks of HSBC’s markets division and spent several weeks shadowing Quinn before taking on the new role his best.
In 2022, Elhedery began a six-month sabbatical from the bank. He used that time to learn Mandarin and – if chosen to replace Quinn – he would be the first bank CEO in modern times to speak Chinese.
Some of HSBC’s biggest investors have long wanted the bank’s top brass to have closer ties to Asia, where HSBC is largely based, according to people familiar with the matter. revenue. The board is aware of investors’ wishes in that regard, the people said.
Matos, 56, also made a strong statement for the job when he received a series of promotions, taking the former Banco Santander SA executive from CEO of HSBC’s Mexican business to head the largest division of this bank. The Portuguese native also moved from London to Hong Kong as part of the bank’s Asia focus.
Headhunters are shortlisting a number of outside candidates, according to people familiar with the matter. That includes Charlie Nunn, the former HSBC executive who became CEO of Lloyds Banking Group Plc in 2021.
Nunn was seen as a potential successor to Quinn before he left HSBC after a decade at the bank. Before joining HSBC, he was a senior partner at McKinsey & Co. and previously worked at Accenture Plc.
Earlier this month, Nunn responded to a question about whether he was interested in becoming the next boss of HSBC by telling the audience at Bloomberg’s Sell-Side Forum in London that he was focused on his current role.
“I’ve got a new team,” Nunn said. “I am very excited about the years ahead at Lloyds.”
What Bloomberg Intelligence says
JPMorgan alumnus Bill Winters’ experience at Standard Chartered shows that a heavily influenced external candidate may not be the best choice. HSBC must demonstrate its ability to drive growth in Asia, now that the streamlining of the franchise is largely complete and we increasingly suspect that an internal candidate may be preferred. George Elhedery (CFO), Nuno Matos (CEO of Wealth and Personal Banking) and Gregory Guyett (CEO of Global Banking and Markets, ex-JPMorgan) could be among Quinn’s potential successors.
