Powerful City investors raise fears over delays in appointing new boss for HSBC as banking giant launches overhaul of its strategy
Powerful City investors have raised fears over delays in appointing a new chief executive for HSBC as the banking giant launches an overhaul of its strategy.
Three investors expressed concerns after it emerged that the bank is unlikely to announce its next leader when it reports its annual results this week.
The bank had been expected to name a successor to John Flint – who was ousted unexpectedly last summer – because it is also due to launch a radical new strategy.
One institution said it was wrong to allow interim boss Noel Quinn to start an overhaul without giving him the top job.
Concerns: One institution said it was wrong to allow interim boss Noel Quinn to start an overhaul without giving him the top job
It said it was unusual for a bank to commit to push through radical changes without having a permanent boss to ‘stand behind it’.
Another City institution urged the board to show ‘unity’ behind one candidate, while a third warned that the delay posed a risk to the share price.
Sources also suggested that the delay could signal that chairman Mark Tucker was the real driving force behind the strategy, which could see up to 10,000 jobs axed.
It is thought that jobs could go across HSBC’s US division, its investment bank in London’s Canary Wharf and its retail bank in France.
The bank is also considering offloading its west coast branches in the US, according to reports.
But HSBC, which makes most of its money in Asia, is committed to its retail bank in the UK.
HSBC declined to comment.