HSBC appoints interim chair Brendan Nelson to permanent role

A picture


HSBC has appointed the former KPMG partner Brendan Nelson as its chair after a prolonged search process that left one of the world’s biggest banks without a permanent executive in the top role for months.The decision to appoint Nelson, who has been serving as interim chair, came as a surprise, after a protracted hunt for a permanent successor for Mark Tucker which involved courting external candidates including the former chancellor George Osborne and the head of Goldman Sachs’s Asia-Pacific division, Kevin Sneader.HSBC failed to find a permanent chair before Tucker left at the end of September, raising questions about the succession planning and the board’s effectiveness, with Tucker having first announced his decision to leave in May.Tucker, a former trainee professional footballer, left after eight years, outlasting three chief executives, to join the Hong Kong-based insurer AIA.The role of HSBC chair has become increasingly politicised, with Tucker navigating simmering tensions between the west and Beijing.

While HSBC is headquartered in London, it makes more than half of its profits in Asia.Osborne, who was in the running to take Tucker’s post, would have brought political experience to a role that requires executives to walk a careful line between the interests of countries in the west and those in Asia.He served as chancellor from 2010 to 2016, before later editing the Evening Standard and taking up a number of City roles including as part-time adviser to the US asset manager BlackRock, and a partner role at the investment bank Robey Warshaw.He is also an adviser to the cryptocurrency exchange Coinbase.Had he been successful, the HSBC job would have been Osborne’s highest-profile City role to date.

The appointment of Nelson, who joined the HSBC board in 2023 and became interim chair in October, has raised questions over how long it will be before the bank has to restart its search for a permanent chair.The 76-year-old had “expressed a desire not to do it for the full six to nine years given the stage in his career”, said the HSBC chief executive, Georges Elhedery, in comments made at the Financial Times banking summit a day before the appointment was announced.Matt Britzman, a senior equity analyst at the investment platform Hargreaves Lansdown, said the comments raised questions about the permanence of this appointment and would “reinforce investor concerns around leadership stability and longer-term succession planning at a critical juncture for the bank”.HSBC’s shares fell 1% on Wednesday after Nelson’s appointment.Gary Greenwood, a banking analyst at the investment firm Shore Capital, said: “The fact that the board has finally alighted on Mr Nelson suggests that it has not been possible to find a suitable external successor and, in our view, it is probably fair to say that Mr Nelson was not top of the list of permanent candidates, otherwise there would have been no need to appoint him as an interim successor.

Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotion“Nevertheless, he is well qualified for the role, in our view, while his appointment brings the process to a close and means that a governance issue has been sorted and the group can move forward with some certainty.”Nelson was previously a partner at KPMG, where he led its global financial services practice that advised and audited international banks.He has also served on the boards of BP and RBS Group, now known at NatWest.HSBC said its decision followed a “robust process that considered both internal and external candidates”.Nelson said: “I look forward to continuing to work with the board, Georges and the wider management team as we deliver on our strategic and financial objectives.

politicsSee all
A picture

‘Failed former Tory MPs’ who join Reform unlikely to be selected as candidates, Zia Yusuf says – as it happened

“Failed Tory MPs” are unlikely to be chosen as parliamentary candidates for Reform Uk at the next election, Zia Yusuf, the party’s head of policy has said.He made the comment in a post on social media promoting a Daily Telegraph story saying that “washed-up” former Conservative MPs who have joined Reform will not be prioritised when parliamentary candidates are being selected. The story was attributed to unnamed party sources.This week it was announced that three more former Tory MPs have gone over to Nigel Farage’s party.Yusuf said:I’ve had many messages from Reform grassroots worried about former Tory MPs joining our party

A picture

Keith McDowall obituary

In 1972, Keith McDowall, who has died aged 96, was contacted by the Conservative cabinet minister Willie Whitelaw. Direct rule had just been imposed on Northern Ireland, and Whitelaw, an uncertain media performer, was made the first secretary of state for the region. McDowall, an experienced journalist then serving as chief information officer at the Home Office, took up the invitation to join Whitelaw’s department. After hesitating initially and assuring Whitelaw that his Labour sympathies would not have an impact on his civil service duties, McDowall swiftly retrained the minister. Effective public relations became the trademark of Whitelaw’s time in Ireland, with the close-cropped McDowall frequently mistaken for a security man

A picture

Who will lose out when Labour cuts red tape? | Brief letters

Keir Starmer wants to sweep away “unnecessary” regulation to promote growth, but fails to say how the government will decide what regulation is necessary (There are those on the left and right who offer only grievance: Labour is getting on with the job of economic renewal, 30 November). He is adopting the market viewpoint rather than that of the public. The cognitive linguist George Lakoff argues that regulations should be reframed as protections rather than burdens. The key question then becomes: “Who is being protected and from what?”Sally BeanWeybridge, Surrey More than 62% of the members voted against calling the new party Your Party, and yet that is its name (Your Party members vote to make name permanent at charged first conference, 30 November). It reminds me of the general election, where more than 60% of voters voted for a party other than the one that won a massive majority

A picture

Spoilt for choice, Conspiracy Kemi grabs wrong end of every stick | John Crace

On days like this, Kemi Badenoch increasingly gives the impression of an over-excitable puppy with a low IQ. Overwhelmed by all the different smells she can pick up on her walkies. Convinced that this is going to be THE BEST DAY EVER. Spoilt for choice as she is surrounded by countless enticing sticks. Yet somehow she always manages to grab the wrong end of every one

A picture

Mark Fisher obituary

It was a source of sorry disappointment to Mark Fisher, the former Labour arts minister, who has died aged 81, that he held this government post for only a little over a year before being dropped from office. Yet such an outcome was predictable – and probably inevitable – given that he was an uncompromising lifelong idealist who never learned to deploy the sort of silky skills needed to guarantee a long and successful frontline political career.When Tony Blair’s government took office in 1997, Mark Fisher was appointed on the day following the election. It was the job of his dreams. He had been the opposition spokesperson since 1987, appointed less than four years after becoming an MP, and he had been instrumental in helping develop a strategy for the arts as an important part of Labour’s new “Cool Britannia” agenda

A picture

Foreign Office lost ‘opportunities to influence’ US after Harry Dunn death, review finds

Foreign Office failures led to opportunities being missed to achieve justice for the family of Harry Dunn, killed in August 2019 in a motorcycle crash outside a US airbase, an independent review commissioned by the Labour government has found.Dame Anne Owers, who led the review, said: “Ministers and senior officials were not involved early enough, and this meant that opportunities were lost to influence – rather than respond to – events.“Direct communication with the family was late and sporadic, and the Foreign Office was slow to realise that they were allies in achieving justice and securing positive change.”Dunn was killed aged 19 when he was hit by a car driven on the wrong side of the road by Anne Sacoolas, the wife of a US state department official based at RAF Croughton. Sacoolas, a US citizen, had been in the country for three weeks, and admitted responsibility