Lloyds CEO Reshapes Succession Plans With Promotions -- Update
July 05 2017 - 8:14AM
Dow Jones News
By Max Colchester
Lloyds Banking Group PLC promoted several executives Wednesday,
ahead of a strategy revamp and in a bid to appease investors
concerned that the bank had too few potential internal replacements
for Chief Executive António Horta-Osório.
The reshuffle announced by the bank also sees key lieutenants to
Mr. Horta-Osório handed extra responsibilities, evidence of the
Portuguese financier's desire to tighten his grip at the lender's
helm.
Executive director Juan Colombás will take the additional role
of chief operating officer, while Chief Financial Officer George
Culmer will also oversee strategy. Andrew Bester, head of
commercial banking and one of the few Lloyds executives once touted
as a potential replacement to Mr. Horta-Osório, is leaving the
company.
The moves follow months of speculation that Mr. Horta-Osório,
having overseen the successful privatization of Lloyds, would leave
the bank to join a rival or pursue a career outside finance. Mr.
Horta-Osório has repeatedly said he was happy at Lloyds.
However, one major criticism from investors was that the bench
of potential internal replacements for Mr. Horta-Osório was too
small. Wednesday's moves were in part to address this, according to
a person familiar with the matter.
A handful of executives were promoted including Vim Maru, who
will oversee the bank's vast retail business. David Oldfield will
run the bank's commercial business. The changes are still subject
to regulatory approval, according to the bank.
Lloyds will outline its next strategic plan in February,
following years of reshaping after its taxpayer bailout in 2009.
Earlier this year the government finally shed the remnants of its
investment in the bank.
Lloyds will now focus on continuing to reshape itself into one
of the lowest-cost retail banks in Europe. The new plan is likely
to see more focus on cost-cutting and refocusing on digital
products as the bank wrestles with low interest rates and the
threat of disruption by technology giants like Amazon.com Inc. or
Alphabet Inc.'s Google, according to a person familiar with the
matter. The management reshuffle will allow executives to be in
place and put the plan in action once it is completed.
Write to Max Colchester at max.colchester@wsj.com
(END) Dow Jones Newswires
July 05, 2017 07:59 ET (11:59 GMT)
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