HSBC has named its finance chief Georges Elhedery as the bank’s new chief executive to replace Noel Quinn who is stepping down after five years in the role.
Elhedery, who will take on the post in September, is being promoted from chief financial officer, which he took up in January last year.
Sir Mark Tucker, HSBC Group chair, said that Elhedery was the outstanding candidate and had a track record of “driving growth, delivering simplification and containing costs”.
The appointment comes after the CEO, the 37-year HSBC veteran Quinn, unexpectedly announced in April that he was stepping down from the role after an “intense” five-year period.
He will now stand down officially on 2 September, while Elhedery continues as CFO in the interim. Quinn will remain available to the group until his gardening leave period ends on 30 April next year.
Elhedery began at HSBC in 2005 and has held roles as the co-chief executive in HSBC’s global banking and markets division, while also leading the bank’s Middle East, north Africa and Turkey regional business between 2016 and 2019.
Tucker said: “During his career he has worked in Asia, the Middle East and Europe. Since joining the board as group chief financial officer in early 2023 and throughout the selection process, he has demonstrated his strategic insight and vision, and deep international perspectives.”
Elhedery takes up the role after HSBC reported an 1.8% drop in pre-tax profit to $12.7bn (£10.1bn) in the first three months of 2024, better than analysts had forecast. Revenues increased by 3% to $20.8bn.
Quinn’s five-year tenure at the helm of HSBC began when he was promoted on an interim basis after the ousting of previous boss John Flint after just 18 months in the role.
In that period, Quinn navigated the bank through the pandemic and slashed 35,000 jobs to save £3.5bn a year.
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He also led the company as it fended off demands from top shareholder Ping An to split off HSBC’s Asian business.
The announcement of Elhedery’s appointment on Wednesday also revealed that he would receive a base salary of £1.38m a year, with a fixed allowance of £1.7m and a pension allowance of £137,6000.
Elhedery will also be eligible for an annual incentive award which will have a maximum value of 215% of his base salary, and a long-term incentive award scheme worth 320% of his salary.
Elhedery said: “Working together with our talented team, I look forward to delivering exceptional value to our clients and investors by driving strong performance on a sustainable growth trajectory.”
