HSBC has ended its year-long global hunt for a new chairman by handing the permanent job to interim leader Brendan Nelson, 76, a decision that has left investors and governance experts questioning the bank’s leadership strategy.
From Global Search to Internal Choice
After reportedly interviewing big names like former UK Chancellor George Osborne and ex-Goldman Sachs executive Kevin Sneader, the board chose to stick with Nelson — a former BP and NatWest figure who has been acting chair since last year.
Criticism Over “Disordered” Process
Corporate law professor Bobby Reddy called the appointment “confused,” saying it damages confidence in HSBC’s succession planning at one of Britain’s biggest banks.
A top-20 shareholder told reporters the outcome “makes the board look second-rate.”
Age and Asia Strategy Concerns
With CEO Georges Elhedery aggressively shifting HSBC’s focus to Asia, some see a mismatch in Nelson’s primarily UK-centric background and his age.
“Bridging” Chairman?
Just 24 hours before the announcement, Elhedery had suggested Nelson was hesitant to take the full-time role. Governance expert Andreas Kokkinis believes Nelson is likely a short-term stabiliser while the search for a younger, Asia-savvy successor quietly continues.
Shares barely moved on the news, but the controversy has put fresh scrutiny on HSBC’s boardroom dynamics.
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