HSBC is overhauling its organizational structure under new CEO Georges Elhedery, simplifying its business into four parts and naming its first female CFO.
The British bank plans to divide its operations between “Eastern markets” – comprising Asia-Pacific and the Middle East – and “Western markets,” encompassing its non-ring-fenced U.K. bank, Americas operations and business in continental Europe, according to documents filed in Hong Kong.
Further, the bank will align itself under four divisions, effective Jan. 1: Hong Kong, U.K., corporate and institutional banking, and international wealth and premier banking.
The changes are meant to “reduce the duplication of processes and decision making that are built into the current structure” and boost HSBC’s agility, the bank said.
The bank also aims to focus on increasing leadership and market share in its most competitive businesses and those with opportunities to grow, Elhedery said.
“This is how we will fast forward our plans to execute our strategy, unleash the full potential of the bank and ensure our talented colleagues can thrive, and deliver best-in-class products and service excellence, for our customers,” Elhedery said. “When our customers succeed, so do we.”
First woman CFO
As to its leadership, HSBC named Pam Kaur as its next CFO, effective Jan. 1. Kaur, the bank’s chief risk and compliance officer, is an 11-year veteran of HSBC who started as head of internal audit, according to her LinkedIn profile.
With the move, Kaur becomes the bank’s first woman CFO, occupying a role Elhedery held before being named CEO in July.
“We had a strong bench of internal and external candidates to choose from and Pam was the exceptional candidate to recommend to the Board,” Elhedery said in a prepared statement. “I look forward to partnering with her for the next stage of the Bank’s growth and development.”
Kaur’s appointment means interim CFO Jon Bingham will revert to his other role as global financial controller. HSBC said it will fill its open chief risk and compliance officer role “in due course.”
As incoming CFO, Kaur has also been named an executive director, although that’s subject to election at HSBC’s annual meeting.
Her base salary as CFO will be £803,000 alongside a fixed-pay allowance of £1,085,000. She’s also eligible for an annual incentive award up to a maximum value of 215% of base salary and a long-term incentive award up to a maximum of 320% of base salary, to be determined by the bank’s remuneration committee.
Before joining HSBC, Kaur logged stints at Citi, Lloyds, Royal Bank of Scotland and Deutsche Bank.
Business revamp
As part of the reorganization, HSBC’s corporate and institutional division will be forged by integrating its commercial banking business outside of the U.K. and Hong Kong with its global business and markets group. Michael Roberts, HSBC’s Americas CEO, will lead this arm.
International wealth and premier banking will bring together the bank’s premier banking-focused businesses outside of the U.K. and Hong Kong, its global private bank, and its asset management and insurance businesses. That will be led by Barry O’Byrne, who was considered a CEO candidate before Elhedery’s appointment.
HSBC’s Hong Kong business will comprise personal banking and commercial banking under co-CEOs David Liao and Surendra Rosha. Its U.K. business will comprise U.K. personal banking, including First Direct and M&S Bank, and U.K. commercial banking, including innovation banking, under CEO Ian Stuart.
“The changes that we are announcing will make it easier for our colleagues to serve our customers and drive the future success of the [HSBC Holdings] Group,” Elhedery said. “The new structure will result in a simpler, more dynamic, and agile organisation as we focus on executing against our strategic priorities, which remain unchanged.”
