HSBC demoted these 7 senior people and promoted these 2 as it cuts costs
HSBC is cutting at least $300m of costs underGeorges Elhedery, its new CEO. Today's restructuring of the executive committee, which has resulted in the elevation of US banker Michael Roberts as head of corporate and institutional banking, to the detriment of London-based Greg Guyett, suggests how Elhedery plans to achieve this.
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As the chart below shows, Elhedery has ejected eight people from HSBC's executive committee and added two to a new operating committee, with a further nomination to come. The changes become effective in January 2025.
The people who've left the executive committee include the head of communications and the head of sustainability, among others.
The people who've joined include chief information officer Stuart Riley, who was hired from Citi in November 2023, and Suzy White, the COO.
For the moment, HSBC has no new chief risk and compliance officer from next year, but an appointment is in process.
The elevation of the CIO and COO reflects Elhedery's need to cut costs, with some suggesting that he will need to cut $2bn in total.
Not all of those who've left the executive committee are leaving the bank. The Financial Times reported earlier that Stephen Moss and Colin Bell are going. However, Gruyett is remaining as chair of a «strategic clients group» reporting directly to Elhedery, which is presumably some consolation.
It's not clear what's becoming of everyone else who hasn't made the cut for George's new operating committee. Whether they're still with the bank this time next year remains to be seen.
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