HSBC Holdings Plc plans to appoint its next chief executive from a shortlist of internal candidates as it begins searching for a successor to outgoing boss Noel Quinn.
Chief Financial Officer Georges Elhedery and Nuno Matos, head of wealth and personal banking, are seen as the main replacements for Quinn, who announced his retirement last month, according to people familiar with the matter. The bank hired an outside recruiting firm to compare them to external candidates for the job, some of the people said, asking not to be identified discussing an internal process.
The research is only just beginning and the committee could yet take another direction, the sources said. An HSBC spokesperson declined to comment.
The internal roster is considered strong and helps avoid a prolonged search to replace Quinn as many external candidates would likely need to complete a period of gardening leave before being able to join us. President Mark Tucker said he plans to wrap up the process in the second half of the year.
Quinn announced last month that he was resigning, a surprise move that comes as Europe’s largest lender tries to deal with deteriorating relations between China and the United States. During his tenure, Quinn led a series of strategic reviews that resulted in a plan to increase the bank’s investments in its Asian operations, while reducing its investments in markets such as the United States and China. France.
The company is committed to continuing this strategy, even as tensions continue to rise between Beijing and Washington. An external candidate would be more likely to want to launch a new strategy, which also left the board more inclined to support the internal talent pool, people familiar with the matter said.
Cultivate talents
Elhedery, 50, took over as finance director in early 2023. The Lebanese-born rose through the ranks of HSBC’s markets division and spent several weeks shadowing Quinn before taking on his latest role.
In 2022, Elhedery took a six-month sabbatical from the bank. He used this time to learn Mandarin and – if chosen to replace Quinn – he would be the first modern-day bank CEO to speak Chinese.
Some of HSBC’s biggest investors have long wanted the bank’s top executives to have closer ties to Asia, where HSBC makes the majority of its revenue, according to people familiar with the matter. The board is aware of investors’ wishes on this matter, the sources said.
Matos, 56, is also making a strong claim for the job after receiving a series of promotions that propelled the former Banco Santander SA executive from CEO of HSBC’s Mexico business to head of its largest division. The Portuguese-born also left London for Hong Kong as part of the bank’s focus on Asia.
Headhunters are in the process of putting together a list of several external candidates, according to sources familiar with the matter. This includes Charlie Nunn, a former HSBC executive who became CEO of Lloyds Banking Group Plc in 2021.
Nunn was seen as a potential successor to Quinn before leaving HSBC after ten years at the bank. Before joining HSBC, he was a senior associate at McKinsey & Co. and previously worked at Accenture Plc.
Earlier this month, Nunn responded to a question about whether he was interested in becoming HSBC’s next boss by telling an audience at Bloomberg’s Sell Side Forum in London that he was focused on his role current.
“I have a new team in place,” Nunn said. “I’m very excited about the next few years at Lloyds.”
What Bloomberg Intelligence says
JPMorgan alumnus Bill Winters’ experience at Standard Chartered shows that an impactful external candidate may not be the best option. HSBC needs to demonstrate its ability to accelerate growth in Asia, with franchise rationalization now largely complete, and we increasingly suspect an internal candidate may be preferred. Potential successors to Quinn are George Elhedery (CFO), Nuno Matos (CEO of Wealth and Personal Banking) and Gregory Guyett (CEO of Global Banking and Markets, ex-JPMorgan).
