HSBC Holdings Plc unexpectedly announced Tuesday that Chief Executive Noel Quinn is resigning after five years, citing the need for a ‘better work-life balance.’
The Asia-focused bank plans to complete the succession process in the second half of the year. Reuters said the top candidate for the position (at the moment) is Chief Financial Officer Georges Elhedery.
Quinn, 62, has been at the helm for five years. Under his leadership, the bank’s profits soared, and its share price increased after the size of its underperforming units was slashed, especially in the United States and Europe. The bank has focused its efforts on Asia.
Throughout his tenure, shares of HSBC have risen nearly 50% in Hong Kong.
Quinn told reporters on a call that his departure is entirely based on pursuing a better work-life balance, or at least that’s the public understanding.
“Doing this job, you have to give 100% — if not 120% — of your energy, your mindset, your time to the role,” he said, adding, “You can keep doing that, but that doesn’t necessarily achieve the balance in life that I wanted.”
“I’ve held intensive leadership roles since I took on a commercial bank role in October 2008 so I’m personally ready for a change,” he continued.
And he concluded: “It’s also a natural inflection point for the bank, as it comes to the end of the current transformation phase. It’s an ideal time to bring in leadership to move the bank forward over the next five years.”
Will Howlett, a financial analyst at Quilter Cheviot, who was quoted by Bloomberg, said the CEO’s exit is a major “surprise, especially given Quinn’s short tenure during which he has led the bank through significant changes.”
Cheviot said, “The departure of Quinn introduces an element of uncertainty about the bank’s future leadership at a time when HSBC is navigating a complex global financial landscape.”
Matt Britzman, equity analyst at Hargreaves Lansdown, pointed out that Quinn has “navigated geopolitical tensions between the US and China” over the course of his tenure and also cites “uncertainty” on who will lead the bank from here.
Other analysts hope the next CEO will introduce further plans to maintain the bank’s focus on its businesses in Asian countries.
Let’s not forget that HSBC has been involved in US money laundering probes. In 2012, the bank agreed to pay $1.92 billion to settle one of these investigations.
Tyler Durden
Tue, 04/30/2024 – 07:45
