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HSBC has appointed Georges ElHedery as chief executive officer, entrusting an insider with the difficult task of running the bank amid rising tensions between the West and China.
HSBC said on Wednesday that El Hedery, who joined the bank in 2005 and has been chief financial officer since the start of 2023, will take over from Noel Quinn on Sept. 2.
Quinn surprised investors in April by announcing he would step down from the role after nearly five years, making El Hedery the leading candidate to succeed him.
His promotion to chief executive would culminate a remarkable ascension to the helm of a financial institution that is particularly exposed to tensions between the West and China.
Though headquartered in London, HSBC has deep ties to Hong Kong, maintains a significant shareholder base there and earns most of its profits in Asia.
The need to navigate geopolitical tensions has been a defining feature of Quinn’s tenure, including fending off demands from HSBC’s largest shareholder, Chinese insurance group Ping An Insurance, to break up the bank.
El Hedery, 50, takes up the role at a time when the boost to HSBC’s profits from rising interest rates is starting to fade.
HSBC considered both internal and external candidates for the job, but the choice quickly narrowed down to a contest between Mr Elhedery and Nuno Matos, who heads the bank’s global wealth and personal banking business.
Announcing El Hedery’s appointment, HSBC Chairman Mark Tucker said: “El Hedery is an exceptional leader and banker who cares passionately about the bank, its customers and its employees.”
“He has a proven track record of leading change, driving growth, delivering simplification, containing costs and focusing on execution.”
The bank said ElHedery’s promotion followed an “orderly and robust” succession process.
The Lebanon-born executive will need to work closely with Tucker, who as chairman has built a reputation for his hands-on approach.
El Hedery is the third CEO appointed under Tucker, whose nine-year term as chairman ends in 2026 but could be extended under certain circumstances.
“ElHedery was the clear candidate given his appointment as chief financial officer, which gives him greater exposure to headquarters and investors,” said Samuel Johal, chairman of board advisory group Buchanan Harvey.
Under Mr. Quinn, HSBC has begun to shrink some of its global operations and focus more on Asia, and he also launched a major restructuring, promising to cut 35,000 jobs and cut $4.5 billion in annual costs.
HSBC has been one of the biggest beneficiaries as central banks raised interest rates to curb inflation, sending its shares to near six-year highs.
The bank’s London-listed shares were flat at the start of trading on Wednesday.
HSBC said Mr El Hedery would receive a basic salary of 1.38 million pounds plus a pension allowance of 10 per cent of that amount.
Quinn is eligible to receive an annual incentive bonus of up to 215 per cent of his base salary and a long-term incentive bonus of up to 320 per cent of his base salary. Quinn earned £10.6 million last year.
“I am honored to have been trusted to lead this great organization into the future,” Mr. ElHedery said in a statement. HSBC said it would appoint a new finance chief to replace Mr. ElHedery “in due course.”
Mr Tucker thanked Mr Quinn, who took up the role on an interim basis in 2019 after his predecessor John Flint was sacked just 18 months into the role, for his “loyal service to the group over 37 years”.
Additional reporting by Emma Dunkley in London
