HSBC Holdings plc announces that it is simplifying its organisational structure into four businesses to accelerate delivery against its strategic priorities.
HSBC Group Chief Executive Officer, Georges Elhedery, commented:
“The changes that we are announcing will make it easier for our colleagues to serve our customers and drive the future success of the Group. The new structure will result in a simpler, more dynamic, and agile organisation as we focus on executing against our strategic priorities, which remain unchanged.
“I am excited about the opportunities ahead of us and firmly believe that this structure sets us up to deliver the next phase of growth. Our home markets of the UK and Hong Kong, together with our corporate and institutional banking as well as our wealth and Premier banking businesses, are the core strengths of HSBC
“By making these changes, we can better focus on increasing leadership and market share in those businesses which have clear competitive advantage and the greatest opportunities to grow. This is how we will fast forward our plans to execute our strategy, unleash the full potential of the bank and ensure our talented colleagues can thrive, and deliver best in class products and service excellence, for our customers. When our customers succeed, so do we.”
From 1 January 2025, the Company will operate through four businesses with clear lines of responsibility:
1. Hong Kong
2. UK
3. Corporate and Institutional Banking
4. International Wealth and Premier Banking
The changes will reduce the duplication of processes and decision making that are built into the current structure and will result in greater alignment and agility in serving our customers. The Group’s functions will be realigned to support the four new businesses.
HONG KONG
Being the market leader in our home market of Hong Kong is one of our clear strengths as a business and remains a top strategic priority. The new “Hong Kong Business” will comprise “Personal Banking” and “Commercial Banking” under the business oversight of David Liao and Surendra Rosha at the Group Operating Committee, for both HSBC as well as Hang Seng Bank.
UK
Our UK ring-fenced bank has a leading market position in our home market of the UK and will continue to be a critical pillar of our strategy. The new “UK Business” will comprise UK “Personal Banking” (including First Direct and M&S Bank) and UK “Commercial Banking,” including Innovation Banking under the sole business oversight of Ian Stuart.
CORPORATE AND INSTITUTIONAL BANKING
We are a market leader in global wholesale banking, especially in cross-border Transaction Banking, and in Capital Markets, underpinned by a strong balance sheet with an enviable deposit franchise. HSBC’s global network remains a key differentiator of our business, with our presence in more than 50 markets.
We are creating a new Corporate and Institutional Banking business through the integration of our Commercial Banking business (outside the UK and Hong Kong) with our Global Banking and Markets business and with the geographic region of the Western Markets (comprising our UK non ring-fenced bank, Europe, and the Americas), which is a predominantly wholesale banking region.
Michael Roberts will lead Corporate and Institutional Banking and Western Markets.
INTERNATIONAL WEALTH AND PREMIER BANKING
One of our greatest strategic growth opportunities is in international wealth – particularly in Asia and the Middle East, capitalising on our established brand and heritage.
Our new International Wealth and Premier Banking business will bring together our Premier banking focussed businesses outside of Hong Kong and the UK, our Global Private Bank, and our wealth manufacturing businesses, Asset Management and Insurance.
Barry O’Byrne will lead International Wealth and Premier Banking.
GEOGRAPHIC GOVERNANCE CHANGES
As part of our new Group organisational structure, we are simplifying our geographic set up.
The “Eastern Markets” will bring together the Asia-Pacific region (APAC) and the Middle East region (MENAT) and will be overseen by David Liao and Surendra Rosha.
The “Western Markets” will comprise the non-ring-fenced bank in the UK, our Continental European business and the Americas and will be overseen by Michael Roberts.
NEW GROUP OPERATING COMMITTEE
In line with the more simplified structure, the Group Executive Committee of 18 members will be replaced by a new Group Operating Committee comprised of 12 members. The Group OpCo will serve as the leading decision-making executive committee of the firm.
These changes will be effective from 1 January 2025.
Further details will be announced alongside the 2024 Full Year results.
HSBC ANNOUNCES APPOINTMENT OF PAM KAUR AS GROUP CHIEF FINANCIAL OFFICER (GCFO)
HSBC Holdings plc (‘HSBC’, the ‘Company’ or the ‘Group’) announces the appointment of Pam Kaur as Group Chief Financial Officer (GCFO) and an Executive Director of the Board of Directors (the ‘Board’) effective 1 January 2025.
Pam, who joined the Group in April 2013 as Group Head of Audit, is currently Group Chief Risk and Compliance Officer (GCRCO). She is a highly experienced financial services executive with almost 40 years’ experience having worked in the UK and the US for British, American and German Banks.
A qualified chartered accountant, Pam has strong technical knowledge and experience in treasury, capital, balance sheet and risk management. She has served on the Group Executive Committee for over a decade and brings a global perspective and an appreciation of the strategic challenges and opportunities, locally and globally, facing the banking industry in general and HSBC in particular.
Jon Bingham, interim GCFO, will resume his role of Global Financial Controller.
Sir Mark Tucker, HSBC Group Chairman, said: “I would like to congratulate Pam on her appointment as GCFO. She is highly respected and well known to the Board and was the unanimous choice. I wish Pam every success in her new role and thank Jon for his excellent support as interim GCFO.”
HSBC Group Chief Executive, Georges Elhedery, said: “We had a strong bench of internal and external candidates to choose from and Pam was the exceptional candidate to recommend to the Board. I look forward to partnering with her for the next stage of the Bank’s growth and development. I would also like to thank Jon for his outstanding support during the interim period.”
We will update on Mrs Kaur’s successor as Group Chief Risk and Compliance Officer in due course.
For and on behalf of
HSBC Holdings plc
Aileen Taylor Company Secretary
Supplementary information
Pam Kaur, aged 60, joined HSBC in April 2013. She is currently the Group Chief Risk and Compliance Officer. Her appointment as an Executive Director of the Board is subject to election at the next annual general meeting of the Company.
Mrs Kaur’s remuneration as Executive Director and Group Chief Financial Officer of the Company under her service contract will consist of a base salary of £803,000 per annum, a fixed pay allowance of £1,085,000 per annum and a pension allowance of £80,300 per annum equal to 10% of her base salary. She will receive benefits in accordance with the approved Directors’ Remuneration Policy.
Mrs Kaur is eligible to be considered 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 the Group Remuneration Committee with reference to the performance of the Company and her personal performance, in accordance with the terms of the Directors’ Remuneration Policy approved at the 2022 Annual General Meeting.
The Company’s current Directors’ Remuneration Policy expires at the 2025 AGM. The Group Remuneration Committee is currently engaging with major shareholders on a revised policy, which, subject to approval by shareholders at the 2025 AGM, will apply to both Executive Directors of the Company.
Mrs Kaur does not have any relationships with any directors, senior management, substantial or controlling shareholders of the Company. As at the date of this announcement, Mrs Kaur has interests in 1,960,245 shares of the Company, representing approximately 0.01% of the issued shares of the Company, within the meaning of Part XV of the Securities and Futures Ordinance of Hong Kong.
There are no matters relating to the appointment of Mrs Kaur that need to be disclosed pursuant to Listing Rule 6.4.8(2) to (6) of the Listing Rules of the Financial Conduct Authority. Save as disclosed above and in the Appendix, there is no other information required to be disclosed pursuant to Rule 13.51(2) of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Source: HSBC
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