HSBC defies critics by picking an internal candidate for top job
EUROPE’S biggest bank HSBC has defied critics by appointing an internal candidate as chief executive, retail lending boss John Flint.
Mr Flint, who is a HSBC lifer having joined the bank on an international management training scheme in Hong Kong in 1998, will take over from Stuart Gulliver in February.
HSBC had come under pressure, including from UK regulators, to look outside the bank for its next chief executive to bring about a change in culture.
The bank suffered a string of scandals since the financial crisis including a $1.9bn fine for money laundering breaches in 2012 and costly payouts over mis-selling PPI products and allegations of foreign-exchange market rigging.
But investors were understood to favour an internal appointment, particularly after HSBC went outside the firm to hire chairman Mark Tucker, who started this month and previously ran Asian insurer AIA Group.
He was HSBC’s first external chairman in its 152-year history. Mr Flint, 49, will earn a base salary of £1.2m a year and could earn a maximum of £9.68m should he meet all of his performance targets.
He said he was “humbled by the responsibility and enormously excited” to lead the bank.