HSBC Keeps Net Open for New CEO
February 24 2020 - 7:18AM
Dow Jones News
By Margot Patrick and Simon Clark
HSBC Holdings PLC said it would continue looking for a new chief
executive while it considers permanently appointing interim CEO
Noel Quinn, after UniCredit SpA boss Jean Pierre Mustier withdrew
from talks about the job.
HSBC's board started looking for a new CEO last fall, after
ousting former head John Flint and installing Mr. Quinn. He is the
only internal candidate, the bank has said. Last week, HSBC
Chairman Mark Tucker, who is leading the search, said the board
intends to stick to a six to 12-month time frame it set in August
to fill the role, and that the process has been "very thorough and
rigorous."
After reports last week that the race had narrowed to Messrs.
Mustier and Quinn, UniCredit on Monday issued a statement saying
Mr. Mustier has confirmed he will remain at the bank. The
French-born CEO hadn't received an offer to go to HSBC but had
emerged as the leading external candidate, The Wall Street Journal
reported Friday.
A spokeswoman for HSBC on Monday said the search "remains
ongoing," indicating Mr. Quinn won't get the job by default. "We
said six to 12 months and we continue to work to that timeline,"
she said.
Analysts on Monday said that stance undermines Mr. Quinn's
credibility as the bank embarks on a strategic overhaul announced
by the interim CEO last week. They said it also raises questions
about the board's judgment to string out the process while Mr.
Quinn moves to cut thousands of jobs and reallocate capital away
from Europe and the U.S. and into Asia.
"To not be elected by the time he was announcing the new
strategy looks like there is a lack of support for him," said John
Cronin at Goodbody Stockbrokers." It's just bizarre to let him
announce the strategy without having assurance he's got the
job."
Mr. Tucker has previously said the board gave Mr. Quinn full
authority from day one to make strategic changes and address areas
of weakness. In August, he said Mr. Quinn would bring "pace,
decisiveness and ambition." The bank has never hired a CEO from
outside and Mr. Tucker, who started in 2017, was the bank's first
externally-selected chairman.
Mr. Quinn is the bank's former head of commercial banking and
has been at HSBC since 1987. He has said he aims to make the job
permanent.
Write to Margot Patrick at margot.patrick@wsj.com and Simon
Clark at simon.clark@wsj.com
(END) Dow Jones Newswires
February 24, 2020 07:03 ET (12:03 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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