HSBC share price: Hunt for new chair could be derailed

on Nov 14, 2016
Updated: Oct 21, 2019

HSBC Holdings’ (LON:HSBA) hunt for a new chair could be derailed, with the leading candidate reportedly hoping for a government job in France, The Sunday Times has revealed. Earlier this year, news emerged that Henri de Castries, the former chief executive of French insurer Axa, was the front-runner to succeed Douglas Flint, who has signalled plans to step down.

HSBC’s share price has jumped in London this morning, having added 1.29 percent to 627.90p as of 08:27 GMT. The surge is in line with a broader market rally, which has seen the benchmark FTSE 100 index add 1.22 percent to 6,812.23 points. The group’s shares have gained more than 22 percent over the past year, and are up by about 17 percent in the year-to-date.
The Sunday Times reported yesterday that Henri de Castries, the former boss of insurance giant Axa, who joined the HSBC board last year, was hoping for a top government job after the French election in May. While he was expected to take the reins of Britain’s biggest bank at the annual meeting next April, he is now reportedly deferring a decision until the outcome of the French general election becomes known.

The newspaper notes that a victory for the centre-right candidate – either former president Nicolas Sarkozy or former Prime Minister Alain Juppé – could potentially lead to a job offer for de Castries.
“The process of identifying the next chairman is on track and we are evaluating a number of candidates,” a spokesman for Europe’s biggest bank said, as quoted by City A.M. “As originally stated we intend to announce a successor in 2017.”
HSBC aims to nominate a successor to chairman Douglas Flint next year, who will then lead the process for selecting a replacement for the group’s chief executive Stuart Gulliver.
As of 08:57 GMT, Monday, 14 November, HSBC Holdings plc share price is 565.65p.

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