As its new CEO prepares to take office next week, HSBC is making changes to its senior management to “position the group for the next phase of development and growth”, including creating a new high-level role devoted to digital and technology development.
Georges Elhedery, who takes the reins on Monday after being named to replace Noel Quinn in July, “has reviewed the accountabilities of the current group chief operating officer (GCOO) role, and will split the responsibilities between two new group executive committee-level roles”, HSBC said in a statement on Thursday.
The split introduces a new role called group chief information officer (GCIO) that will be taken up by former Citigroup banker Stuart Riley, who will be charged with shepherding data and innovation.
Since joining the group in February, Riley “has made a strong and positive impact, demonstrating the right capabilities, energy, and values to lead HSBC’s technology teams in the delivery of our technology ambitions”, Hong Kong’s largest lender said.
“He brings extensive experience in managing global technology for large banking institutions, most recently as global co-CIO for Citi, where he co-led the technology division,” the statement said.
John Hinshaw, current GCOO, will leave the group to pursue other opportunities, HSBC said. Suzy White, currently chief operating officer for global banking and markets, will handle the remaining responsibilities of the GCOO role on an interim basis while a formal recruitment process takes place, the bank said.
“The new move highlights HSBC’s high regard for future developments in information technology, with expectations that the group will continue to increase its focus on business digitisation and technological innovation,” said Kenny Ng Lai-yin, a strategist at Everbright Securities International.
“The restructuring before the new CEO’s appointment reflects his emphasis on advancing HSBC’s development strategies, particularly in the field of information technology.”
Also leaving the bank is Nuno Matos, CEO of global wealth and personal banking, who will be replaced by Barry O’Byrne, CEO of HSBC’s global commercial banking arm.
“[O’Byrne] has a strong and proven track record in executing global commercial bank’s transformation and growing the international franchise,” HSBC said.
Commercial banking’s contribution to operating profit under O’Byrne surpassed that of wealth and personal banking in the first half of the year, said Everbright’s Ng.
“HSBC likely aims to leverage O’Byrne’s management experience in commercial banking to enhance the business development of wealth and personal banking, which is always the emphasis of the bank,” he said.
Aileen Taylor, formerly group company secretary and chief governance officer, has been named as group chief human resources and governance officer, replacing Elaine Arden, who steps down after seven years as group chief human resources officer.
“[Taylor] is a strong and inclusive leader with a demonstrable track record over 20 years of advising boards and executives in delivering strategy, simplification and transformation,” HSBC said.
The remodelling of upper management reflects that the incoming CEO is keen on digital innovation and the wealth-management business, said Tom Chan Pak-lam, the permanent honorary president of the Institute of Securities Dealers, a brokers’ industry body.
“The new appointments show that the new CEO is acting quickly to help the bank to develop more on technology and wealth management,” Chan said. “We can expect to see more new changes under the leadership of HSBC in the near future.”
All of the new appointments will be effective from October 1 and are subject to regulatory approval where required, HSBC said.
Elhedery said in the statement that he is looking forward to working with the new leaders “as we pursue the next phase of our growth” and wishes the departing executives “every success in the future”.
