HSBC’s so-called “ruthless” CEO isn’t its most intimidating figure.

HSBC’s Leadership Shake-Up

HSBC is undergoing significant changes under Chief Executive Officer Georges Erhedery, moving away from its past as a company known for navigating large bureaucracies with ease. The investment and corporate banking divisions have been merged, and there are cuts to mergers and acquisitions as well as equity capital markets activities outside of North America, Asia, and the Middle East.

Last week, Mr. Elhedery expressed his readiness to make tough calls, emphasizing a relentless pursuit for HSBC to rank among the top five in its field. He stated, “We must be ruthless. We need to excel at what we do.”

However, within the company, some believe that Mr. Elhedery isn’t seen as the most cutthroat leader—this reputation might have belonged to the outgoing chairman, Mark Tucker. Instead, insiders point to Michael Roberts and Jerry Keefe as the leaders steering this transition.

Roberts oversees HSBC’s corporate and institutional banking in the UK, Europe, and the Americas. Keefe manages the European and American banking sectors. Both executives transitioned from Citi, with Roberts joining in 2019 and Keefe following suit in 2021.

There are whispers among Citi alumni that Roberts and Keefe command quite a bit of respect, if not a bit of fear, at HSBC. Some insiders argue that their approach has led to a shake-up within the investment banking division, impacting their popularity. For instance, during an internal presentation in June, Roberts faced some ridicule after declaring that HSBC had become the envy of Wall Street.

Keefe, in particular, has drawn some concern among staff. One insider referred to him as Roberts’ “execution henchman,” suggesting that his push for change has made others hesitant to oppose him. “Jerry doesn’t take no for an answer,” shared a former employee.

With reports of many well-paid employees doing minimal work, Keefe’s assertiveness might be just what the bank needs. Mr. Elhederi, who has been with HSBC’s markets division since 2005, might benefit from studying their tactics. “Georges is a good person,” one insider mentioned, “but Roberts and Keefe could certainly be more aggressive.”