As HSBC (HSBA.L), opens new tab prepares to name its third CEO in nine years, the bank is exploring financial incentives and reallocating key projects to retain those who miss out on the top job, two people with knowledge of the discussions told Reuters. Europe's biggest bank could reassign its technology transformation and innovation strategy, currently overseen by CEO Noel Quinn, away from his successor, the people said, speaking on condition of anonymity.
HSBC is expected to pick its new chief executive from a crop of internal candidates, with an announcement possible as soon as this month, two other sources with knowledge of the matter said. The bank is keen to retain top talent after a string of internal changes and as it faces challenges including tensions between Britain and China, its key markets, and a lacklustre share price performance. Three shareholders, including two of HSBC's 20 largest, told Reuters they were concerned the CEO appointment could lead to more management upheaval.
Picking Chief Financial Officer Georges Elhedery as CEO, for example, would see the CFO role occupied by a third person in less than three years. "Promotions do leave gaps elsewhere, and that merry-go-round can be problematic if not handled well," one of the investors said. The reassigned projects could come with significant pay incentives as they represent the majority of the weighting in Quinn's key performance indicators, HSBC's remuneration report shows.
Quinn's total pay package dou.
