(29 November 2005 – UK) HSBC has continued its 140 year old tradition of never bringing in people externally to lead the bank, announcing that current chief executive Stephen Green will take over as chairman in May.Green will replace John Bond, who is retiring, and the head of HSBC’s UK operation Michael Geoghegan will in turn replace Green.
Appointing a chief executive to the board is frowned upon by the UK’s code on corporate governance, which demands an explanation when the code is broken.
However, HSBC said institutional investors had been consulted and had approved the appointment of Green to chairman unanimously.
Outgoing chairman Bond oversaw a number of acquisitions and generally ushered in a less cautious approach to lending. His departure is viewed generally by the market as being a tough act to follow.