Europe’s biggest banks, HSBC (LON:HSBA), has appointed AIA Group boss Mark Tucker as chairman to replace Douglas Flint, who plans to step down in 2017.
The one-time professional footballer will take over as group chairman designate from 1 September. It is the first time that HSBC has appointed an external chairman. It pledged to find a candidate from outside the bank to succeed Flint, a choice that will ensure the bank will meet corporate governance rules.
“The appointment of a safe pair of hands like Tucker potentially signals an increasing focus on steadier, annuity-style income streams where HSBC has a competitive advantage and which are also set to benefit as interest rates rise,” said Benjamin Quinlan, CEO of Hong Kong consultancy Quinlan & Associates.
“It also highlights a renewed focus on risk and compliance after HSBC recently got itself in hot water with regulators. The strategy now is all about stability and predictability.”
One of Tucker’s first jobs will be to find a replacement for chief executive of HSBC, Stuart Gulliver, who plans to step down next year. Tucker will have to decide whether to promote one of the bank’s existing senior executives or select an outsider like himself.
On top of this, Tucker will also have the responsibility in help steer HSBC through continuing regulatory issues, which include a deferred-prosecution agreement with US authorities and the news that the UK’s Financial Conduct Authority was investigating concerns about its anti-money laundering controls.
Tucker will receive an annual fee of 1.5 million pounds, as well as standard benefits, HSBC said.
Flint will be stepping down from HSBC after six years with the global bank. He saw through an overhaul in recent years in an attempt to reverse declining profits. Over the past six years it has cut more than 40,000 jobs and sold off businesses.
AIA (HKG:1299) have said that Ng Keng Hooi, would take over as chief executive to replace Tucker from 1 September.