HSBC has announced that it is relocating the principal office of the group chief executive to Hong Kong, to focus on emerging markets. Chief executive will move to Hong Kong from 1 February 2010 and will also maintain an office and a regular presence in London. He is also expected to assume responsibility for developing group strategy in agreement with the group chairman and for recommendation to the board.
The bank has said that the group holding company remains domiciled in the UK and has no plans to move. It will continue to be resident in the UK for tax purposes. The group chairman and two executive directors, Douglas Flint and Stuart Gulliver, will continue to be based in London. The UK Financial Services Authority remains the lead regulator of the group.
The bank has added that the group chief executive will also become chairman of HSBC, succeeding Vincent Cheng on 1 February 2010. Mr. Cheng, who has chaired HSBC’s Asia business since 2005, will continue to report to the group chairman and work to develop the group business in China. Mr. Cheng remains a member of the board of HSBC Holdings and continues as chairman of HSBC Bank (China) and of HSBC Taiwan.
Additionally, the bank has made some senior executive management changes to support the relocation of the principal office of the group chief executive, with effect from 1 February 2010.
Sandy Flockhart, executive director, will be appointed as chairman personal and commercial banking, reporting to the group chief executive and based in Hong Kong. He will have responsibility for: personal financial services and commercial banking business globally; HSBC’s Latin American and African businesses; the group’s technology, services and operations; and most group functions, including human resources, marketing and legal. He will deputise within Asia-Pacific for the group chief executive when the latter is absent from the region.
Stuart Gulliver, executive director, will be appointed chairman Europe and the Middle East, reporting to the group chief executive and based in London. In this capacity he will assume overall responsibility for all HSBC’s businesses across Europe and the Middle East. He will continue to manage global banking and markets and asset management and also take responsibility for global private banking and insurance. He will become chairman of HSBC Bank and of HSBC Bank Middle East.
Douglas Flint, executive director, will assume responsibility for compliance in addition to his existing remit for credit and risk, and finance. His title will change to chief financial officer, executive director risk and regulation, and he will report to the group chief executive and be based in London.
Peter Wong will be appointed chief executive of the HSBC, succeeding Sandy Flockhart and reporting to Michael Geoghegan. Mr. Wong becomes a group managing director and a member of the group management board. Brendan McDonagh, group managing director and chief executive of HSBC North America, will continue to report to the group chief executive.
Stephen Green, group chairman, said: “The additional management presence in Hong Kong and focus on our faster-growing markets is absolutely right for HSBC and entirely consistent with the strategy we set out in 2006. There is absolutely no question of HSBC pulling away from London. We will operate from two equally strategically important centres for the company. Based in London, where we are domiciled and regulated, I will oversee the stewardship of our business and our globally strategic relationships with governments, regulators and with our owners. Based in Hong Kong, Mike will drive the continued development of our business and oversee the executive management team.”
Michael Geoghegan, group chief executive, said: “Operating from Hong Kong, I will be on the ground in our largest and most important region. The move we are announcing mirrors the shape of our business, as well as reflecting our deep roots in Asia and Hong Kong.”
