Standard Chartered share price rises as bank announces management shake-up

on Jul 20, 2015
Updated: Oct 21, 2019
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Standard Chartered Plc (LON:STAN)has announced a major management shake-up that is poised to strengthen chief executive officer Bill Winters’ control of the bank. Standard Chartered said yesterday it had formed a new management team,reporting directly to Winters, aimed at accelerating the company’s cost saving effort.

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The new 13-member management team, comprising the three group executive directors,plus client and regional CEOs and functional heads, will have primary responsibility for executing Standard Chartered’s strategy and will work with Winters on a plan to address the company’s performance challenges. Proposals are expected to be delivered by the end of the year.
The changes will see the role of deputy CEO Mike Rees reduced as he will no longer receive direct reports. In addition, he will lose responsibility for all three of Standard Chartered’s client businesses, which will now be assumed by Winters.

A former head of JPMorgan’s investment bank, Winters took over StanChart from Peter Sands, who stepped down in June after failing to reverse two years of annual profit decline and a plunge in share price. The new chief executive has vowed to speed up the bank’s cost-cutting drive, improve its financial strength and streamline its business. Yesterday, StanChart said that the new team would help company improve accountability, speed up decision making and reduce bureaucracy. It would also play a key part in the company’s previously announced plans to cut $1.8 billion of costs by 2017, the bank added.
“The Group needs to kick-start performance, reduce its cost base and bureaucracy, improve accountability, and speed up decision making,” Winters said in a statement. “The new structure will help achieve all of these critical objectives and will be in place as we communicate a comprehensive plan to address the Group’s performance by the year end.”
The appointments would be formalised on 1 October, StanChart said, adding that the new structure would be fully in place by 1 January, 2016.
In today’s trading, Standard Chartered shares were up 0.7 percent at 1,024.50p, as of 08:08 BST. The stock has risen 6.6 percent since the start of the year and the company’s market capitalisation currently stands at £26.1 billion.
As of 10:39 BST, Monday, 20 July, Standard Chartered PLC share price is 1,030.25p.

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