Chairing a UK-listed company was once the ultimate reward for seasoned executives looking for prestige without being bogged down in the nitty-gritty of running a business. But HSBC, one of Britain’s biggest listed businesses, is struggling to fill its chair position.
The bank has been unsuccessful in its hunt for a chairman to replace Sir Mark Tucker, who unexpectedly announced his resignation in May. HSBC’s board has expanded its search after failing to find enough suitable candidates from the 100 it had shortlisted. Several high-profile executives have declined the role.
Those considered include the CEO of Zurich Insurance, Mario Greco, two Goldman Sachs executives, Kevin Sneader and Richard Gnodde, and Bruce Carnegie-Brown, the former Lloyd’s of London chairman. Zurich confirmed that Greco “immediately said no” when approached by headhunters, citing his commitment to his current role.
With the current chair intending to step down on 30 September, HSBC is under mounting pressure to find a suitable successor. Insiders say the selection process has moved much more slowly than anticipated, raising the risk of an extended leadership vacuum.
One might assume that Britain’s biggest bank would have no trouble attracting candidates. HSBC boasts a strong global presence and a highly lucrative compensation package. Yet the unique demands of the job along with the multitude of challenges facing the bank are limiting its appeal among top-tier talent.
The question is not just who’s good enough, but who’s willing?
HSBC’s struggle to secure a new chair signals a deeper talent gap in board-level leadership, especially for firms straddling geopolitical divides.
The bank has a unique corporate structure among major lenders. It’s headquartered in London, but most of its profits come from China and Hong Kong. This complicates its search for a new group leader, as whoever fills the position will be immediately torn between competing political interests and regulators in the UK and China. HSBC bosses faced heavy criticism in 2020 over their controversial decision to stay neutral on Beijing’s crackdown on democracy advocates in Hong Kong, for instance.
The next chair will need more than industry knowledge and experience; they’ll need political deftness, too. They will be responsible for maintaining trust with investors, other financial institutions and multiple regulators, while walking a tightrope between the governments in London and Beijing.
HSBC has faced a string of setbacks and challenges in recent years, from governance to strategy to public perception. Last year, the bank announced it was undergoing a major restructuring in response to economic pressures. This involved tightening its focus on Asia, where the lender already earns the bulk of its profit. The decision stoked speculation and uncertainty among shareholders and investors over the bank’s long-term commitment to the UK market.
The bank is also facing criticism for its stance on sustainability and climate initiatives. It has previously been accused of greenwashing in some of its advertising and this year ditched its goal to reach net-zero carbon emissions across the business by 2030.
Addressing all of these problems is proving to be a mammoth task for the board. No wonder they have struggled to find a chair who is willing and able to lead the charge. Candidates with the right skills to help solve HSBC’s problems may also find that they are better compensated and face less scrutiny at a private company.
For many executives, the chair position is no longer the career-crowning opportunity it once was. HSBC is not the only firm in the FTSE 100 struggling to find a chair. BP experienced similar challenges this month. Before hiring Helge Lund as its new chair, the oil giant was turned down by Sam Laidlaw, the former Centrica chief executive, and Ken Mackenzie, the former BHP chairman.
Geopolitical tensions, activist shareholders, ESG scrutiny and relentless media and regulatory attention have made the role of chairman less of a graceful landing for executives nearing the end of their career and more of a diplomatic minefield. It’s a high-risk commitment with limited upsides. For HSBC, the hunt goes on. Expect others to face similar dilemmas.
Chairing a UK-listed company was once the ultimate reward for seasoned executives looking for prestige without being bogged down in the nitty-gritty of running a business. But HSBC, one of Britain’s biggest listed businesses, is struggling to fill its chair position.
The bank has been unsuccessful in its hunt for a chairman to replace Sir Mark Tucker, who unexpectedly announced his resignation in May. HSBC’s board has expanded its search after failing to find enough suitable candidates from the 100 it had shortlisted. Several high-profile executives have declined the role.
Those considered include the CEO of Zurich Insurance, Mario Greco, two Goldman Sachs executives, Kevin Sneader and Richard Gnodde, and Bruce Carnegie-Brown, the former Lloyd’s of London chairman. Zurich confirmed that Greco “immediately said no” when approached by headhunters, citing his commitment to his current role.
