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Monday, March 13, 2017, 09:28

HSBC names AIA’s Tucker chairman, replacing Flint in Oct

By Bloomberg

HSBC names AIA’s Tucker chairman, replacing Flint in Oct
Mark Tucker, chief executive officer of AIA Group Ltd and former head of Prudential Plc, will succeed Douglas Flint as HSBC chairman, the bank said in a statement on March 13, 2017. (Bloomberg / David Paul Morris)

HSBC Holdings Plc named insurance executive Mark Tucker to succeed Douglas Flint as chairman, enlisting an outsider to oversee Europe’s biggest bank as it overhauls management.

Tucker’s major task will be to find a successor to Chief Executive Officer Stuart Gulliver, who has led the bank for more than six years

Tucker, 59, chief executive officer of AIA Group Ltd and former head of Prudential Plc, will take the post October 1, the bank said in a statement Monday. AIA Regional CEO Ng Keng Hooi will immediately become CEO-designee and formally succeed Tucker on September 1.

Tucker’s major task will be to find a successor to Chief Executive Officer Stuart Gulliver, who has led the bank for more than six years. A replacement is expected to be announced during 2018, in order to meet Gulliver’s stated desire to retire in that timeframe, HSBC said in the statement.

HSBC, one of the world’s largest lenders with about 235,000 employees in about 70 countries, is restructuring to adapt to tougher regulations, a law requiring the separation of its retail operations from the investment bank in the UK and amid a legacy of failed compliance and misconduct. The bank remains under the watch of the US Justice Department after helping South American drug cartels launder money, and faces moderating economic growth in China and the prospect of a post-Brexit slowdown in the UK, its two most important regions.

READ MORE: HSBC profit for 2016 tumbles 82%

Soccer Player

Tucker played professional soccer in his early life and was on several UK teams including the Wolverhampton Wanderers, Rochdale and Barnet, according to reports from the Daily Telegraph. He switched to finance after attending the University of Leeds. He was finance director at HBOS Plc and held several leadership jobs at Prudential and Hong Kong-based AIA. Tucker is also on the board of New York-based Goldman Sachs Group Inc. He will step down from Goldman before taking up his role at HSBC.

HSBC has revamped its board after coming under pressure from shareholders unhappy about declining profitability. The bank added Axa SA CEO Henri de Castries and former leader of Diageo Plc Paul Walsh as independent non-executive directors in November. The board’s senior independent director Rachel Lomax ran the search for the new chairman, which the bank has said would be an external hire and take a non-executive role.

Scotland-born Flint, 61, joined HSBC in 1995, becoming finance director that year before being named executive chairman in 2010. Oxford-educated Gulliver, 57, started at the bank in 1980 and excelled as a trader, rising through the ranks to become CEO in 2011.

READ MORE: HSBC joins rush to launch peer payment app

Job Cuts

Since 2011, the duo has announced more than 87,000 job cuts and exited more than 80 businesses, reducing HSBC’s global footprint. Alongside most other European banks, the executives have been struggling to increase profitability faced with record-low interest rates, misconduct fines and rising compliance and regulatory costs. The shares have increased 2.8 percent so far this year, after a 1.8 percent gain in 2016 that followed declines of 12 percent in 2015 and 8 percent a year earlier.

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