HSBC broke away from 151 years of tradition to appoint an outsider as its chairman, choosing Mark Tucker to don the new role. Tucker will replace Douglas Flint as chairman, with Flint stepping down this year.
Tucker will take over the reins from September 1, when he will officially be the group chairman designate. He will don the role of non-executive chairman from October 1 this year.
Tucker is currently the chief executive of AIA Group Limited, the second largest insurer in the world. He has led the company since 2010, helping it achieve a market capitalisation of $78 billion. He is also a non-executive director at Goldman Sachs, and will have to resign when he joins HSBC.
As chairman of Europe’s biggest bank, he will receive an annual salary of $1.83 million, excluding other benefits. His basic salary at AIA was $1.5 million minus the incentives.
Shares of the bank increased by 1.2% on Monday, as news of the appointment signalled strong intentions from HSBC.
As Chairman he will also have to choose a new CEO, with current CEO Stuart Gulliver stepping down in 2018. Top names doing the rounds for this position include Antonio Simoes, HSBC’s Europe Chief, John Flint, Head of Wealth Management at HSBC, and Matthew Westerman, a former Goldman Sachs banker.
As CEO and Chairman, Gulliver and Flint were at the helm for six years, taking a number of tough decisions. The duo announced 87,000 job cuts in 2011, exiting over 80 businesses to reduce HSBC’s global footprint. They were also criticized for their leadership skills following leaked reports which indicated that HSBC helped drug cartels launder money, in addition to advising customers how to evade tax.
Tucker will be responsible for leading the company and its 2.35 lakh employees, ensuring that the bank can make profits in these difficult times.