Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

HSBC says interim CEO Noel Quinn can keep the job permanently

Quinn’s appointment comes as HSBC faces fallout from coronavirus, social unrest, low-interest rates and the US-China trade war.His pay package includes a base salary of £1.27 million (US$1.53 million) and a fixed pay allowance of £1.7 million per year

HSBC Holdings says its interim chief executive Noel Quinn will keep the role permanently, effective immediately, the bank said on Tuesday.

“Noel has proven to be the outstanding candidate to take on a role permanently that he has performed impressively on an interim basis since August 2019,” Mark Tucker, chairman of HSBC, said in a statement.

Quinn, 58, was appointed acting chief executive and replaced John Flint in August after Tucker said a “different approach” was needed by HSBC in a more challenging environment. Flint was in the job just 18 months.

Quinn takes the top job at HSBC at a challenging time. Global economic is set to slow because of the coronavirus outbreak that has infected over 180,000 people worldwide. The bank, Europe's largest banks by assets, and other lenders are also struggling to navigate historically low-interest rates worldwide.

The US Federal Reserve cut interest rates by one percentage point to zero on Sunday, which was immediately followed by Hong Kong Monetary Authority cutting its base rate by 64 basis points to 0.86 per cent. Hong Kong, where the bank has a large presence, fell into recession in the third quarter.

Tucker believes Quinn to be the right man to navigate these problems.

“He is a strong and proven leader with extensive global banking expertise, deep client relationships and the energy and skill to drive the business forward at pace,” Tucker said. “In the last few months, Noel has worked closely with the board to agree on the key actions required to build and enhance performance on a sustainable basis. He has shown a great understanding of HSBC, the challenges we face and the significant opportunities for growth that lie ahead.”

After the appointment, Quinn said in a statement that he would work with Tucker and the over 230,000 staff of HSBC worldwide “to reposition the bank for success in the future.”

“HSBC is an outstanding global company with talented and dedicated people. There is much that remains to be done and I am confident that we will rise to the challenge and deliver for our shareholders, customers, employees and society at large,” Quinn said.

His pay package includes a base salary of £1.27 million (US$1.53 million) and a fixed pay allowance of £1.7 million per year and a pension equal to 10 per cent of his base salary. He may get a bonus of up to 215 per cent of his salary, according to the bank's filing in London.

This is similar to that of his predecessor John Flint who had a base salary £1.2 million a year, a fixed pay allowance of £1.7 million and a pension allowance of £360,000.

The bank is listed in both London and Hong Kong. The bank’s shares in London rose 6.5 per cent on Tuesday to close at 494.65 pence.

Quinn has a BA (Honours) in Accountancy from Birmingham Polytechnic. In 1987, he joined Forward Trust Group, a subsidiary of Midland Bank which in the early 1990s were taken over by HSBC. He was based in Hong Kong from 2011 to 2015 when he was the regional head of commercial banking for Asia-Pacific. He was appointed chief executive of global commercial banking in December 2015, and became group managing director in September 2016, according to the website of the bank.

Since taking over as interim chief executive, Quinn has restructured the bank's European management, reshuffled its investment bank and named a new executive to oversee strategic execution in its US business.

In February, Quinn said HSBC would cut as many as 35,000 jobs and reduce annual costs by a further US$4.5 billion in the bank's third major reshaping in a decade.

As part of the revamped strategy, HSBC is making a bigger bet on rising income in mainland China and Asia, particularly in the Greater Bay Area as China's financial services industry further opens up. Quinn has said the bank would shift capital from underperforming businesses in Europe and the US to growth markets, including China and Hong Kong.

HSBC has been shrinking its investment bank in Europe and the US and cut its American retail branch network by 30 per cent.

Moody's and other major credit rating agencies downgraded their outlooks for HSBC to negative in November and in December after the bank warned it would not reach its 11 per cent return on tangible equity (ROTE) target in 2020. The bank's ROTE was 8.4 per cent in 2019.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×