HSBC has a new chair but the succession process should have been slicker

"After all, while US presidents may go on into their 80s these days, chairs of globally important banks tend not to. Nelson has been an HSBC non-executive director for two years, so should know the bank's unique vibe by now. He's also done time on the boards of BP and post-crisis Royal Bank of Scotland/NatWest during periods of boardroom rough and tumble."

"Those are not insignificant qualifications for the role, and when the balance sheet is as complex as HSBC's, top-level audit experience helps. Yet it's easy to see why likely length of tenure aside Nelson wasn't attracting much betting money. He may have advised banks at KPMG but he's not a banker. He hasn't chaired a FTSE 100 company. And he doesn't bring much experience of walking geopolitical tight ropes."

"HSBC is a UK-regulated bank that makes half its money in Hong Kong and mainland China and must constantly be alert to flare-ups between Washington, Beijing and London. Memories are fresh of how HSBC was accused by Mike Pompeo, when US secretary of state, of a corporate kowtow to the Chinese Communist party for its response in 2020 to Beijing's move to end Hong Kong's autonomy."

Sir Mark Tucker, 67, retired as chair of HSBC in September and was succeeded temporarily by Brendan Nelson, 76. Georges Elhedery, HSBC chief executive, said Nelson did not wish to serve a full six-to-nine-year term. Nelson has been a non-executive director for two years and served on boards including BP and post‑crisis Royal Bank of Scotland/NatWest. Nelson's top‑level audit experience is relevant to HSBC’s complex balance sheet. Nelson is not a banker, has not chaired a FTSE 100 company and brings limited geopolitical experience. HSBC is UK‑regulated, earns half its revenue in Hong Kong and mainland China and faces US‑China‑UK tensions, including past criticism from Mike Pompeo.

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