The British financial services company HSBC Bank PLC recently reported that long-time chairman Douglas Flint is now set to step down from his position and will be succeeded by insurance company AIA Group Ltd. Chief Executive Mark Tucker by October 1.
In addition to Tucker’s decision to step down as CEO of AIA, he will also leave American banking institution Goldman Sachs as member of the board. Tucker will be replaced from his chief executive position by AIA’s regional executive Ng Keng Hooi immediately after Tucker’s departure.
Meanwhile, HSBC Chief Executive Stuart Gulliver is also set to step down from his executive obligations by 2018, and finding a replacement for the long-time CEO will be one of Tucker’s duties upon his assumption of office by October this year.
Tucker’s appointment marks the first time HSBC has placed someone outside of the company in one of its executive positions. HSBC has recently been on a goal to boost shares. The bank initially announced its plans to finding replacement for Flint back in March 2016.
The lending company decided to choose Tucker as the new chairman, even though he was an external candidate, because of Tucker’s history of being able to direct a company’s stock upwards. Tucker has experience seeing operations both in Britain and Hong Kong area, further putting him in lead as a credible replacement to improving HSBC’s performance.
“We are delighted that in Mark Tucker, we have secured someone who possesses the rare combination of experience demanded by the HSBC board. He has a long track record of successful leadership of complex financial services businesses in both Asia and the UK,” said Rachel Lomax, HSBC senior independent director.
Upon Tucker’s appointment as chairman, it was reported that his annual salary was at £1.5 million pounds ($1.8 million), while also receiving one-time relocation funds of £300,000.
The departure of Flint and Gulliver from HSBC ends the longest-lasting chief executive-chairman partnership from a European Bank.
Although many investors favored the Gulliver-Flint partnership, the duo’s management still has brought upon several challenges to HSBC throughout the course of their management. In 2011, one of Gulliver and Flint’s plans forced HSBC to cut some global operations and closing several of its business worldwide. In 2012, HSBC settled $1.9 billion due to an issue regarding the bank ignoring some money laundering problems in its system.
Due to these several issues, several shareholders pushed the earlier replacement of the duo, forcing the two to announce their departure in 2016.
Upon the announcement of Tucker’s appointment as the new chairman, HSBC shares are expected to climb around 1%. In premarket trading, HSBC stock (NYSE: HSBC) already climbed 1.48% to $41.18 per share, a sign of bullish sentiment from investors.
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