HSBC announced it has picked John Flint, its chief executive of retail banking and wealth management, to succeed Stuart Gulliver as group chief executive and executive director, who is retiring. Flint’s role will be effective from 21 February 2018.
In a statement, newly-appointed group chairman Mark Tucker, who also led the search to identify Stuart’s successor, said, “Through the search process, Flint has developed with myself and the board a clear sense of the opportunities and priorities that lie ahead. Over the coming months, before he formally takes over the group CEO role from Gulliver, we will be working closely together to develop and agree the key actions required to ensure we build on and enhance HSBC’s current momentum.”
Tucker added, “Flint has broad and deep banking experience across regions, businesses and functions. He has a great understanding and regard for HSBC’s heritage, and the passion to build the bank for the next generation.”
Flint said, while the bank is very well-positioned for the future, it must continue to innovate and accelerate the pace of change required to meet the expectations of its shareholders, customers, employees and society at large. “I’m looking forward to working with Tucker, the board and over 230,000 colleagues around the world to make this great bank even better,” he said.
Flint first joined HSBC in 1989. As group chief executive and executive director, Flint will receive a base salary of £1,200,000 per annum, a fixed pay allowance of £1,700,000 per annum and a pension allowance of £360,000 per annum equal to 30% of his base salary.
His service contract also provides for discretionary variable pay that consists of an annual incentive award up to a maximum value of 215% of base salary, and a long-term incentive award up to a maximum of 320% of base salary. This is determined by reference to the performance and profitability of the bank, as well as his personal performance and remuneration benchmarks in the industry, said HSBC’s spokesperson.
Commenting on Gulliver’s retirement, Tucker said, the banking veteran has led HSBC through a challenging and difficult period with great energy and commitment and successfully reshaped the business strategy of the bank. This includes the important work of “putting in place global standards for identifying and preventing financial crime. Since January 2011 the bank has paid US$60.7 billion in dividends, announced an additional US$5.5 billion of share buybacks, and delivered a total shareholder return of 66.8%. This is an outstanding track record.”
“I would like to thank him on behalf of the board for everything he has done for HSBC,” he added.
Gulliver has been leading HSBC as group CEO for the last seven years. He joined HSBC in 1980, and has been group chief executive since January 2011. After stepping down as group chief executive on 20 February 2018, Gulliver will continue to advise HSBC until he formally retires from HSBC on 11 October 2018.
Headquartered in London, HSBC group’s assets totalled US$2,492 billion as of 30 June 2017. The lender currently operates 3,900 offices in 67 countries across Europe, Asia, North and Latin America, and the Middle East and North Africa.