HSBC Hldgs (LON:HSBA) group chairman Stephen Green has acted to dispel rumours of his imminent resignation by promising to chair next year's AGM. At the banking group's London AGM today, Green referred to 'a number of press stories speculating on succession planning for the chairman's role'. The group's chief executive Michael Geoghegan moved to Hong Kong earlier this year, since when it has reportedly been working on a succession plan for Green.
Mr Green said: "I would have preferred not to say anything, because actually we have nothing to announce - which just goes to show you shouldn't believe all you read in the papers. At HSBC, we do of course discuss succession for all key roles, both at board and senior management level, indeed it would be irresponsible of us not to do so. Rest assured, when there's something to say, we will say it to our shareholders first."
He added: "We have, of course, evolved the governance of the group such that the group chief executive is fully empowered, as CEOs usually are, to develop strategy, to drive company performance and continued development of the business, and to oversee our executive team, whilst the group chairman oversees the stewardship of the business and our globally strategic relationships with governments, regulators and our owners. This is now our approach to the governance of the group and we certainly have no plans to reverse this. We believe the chairman's role must be essentially full-time, and London-based, just as we believe the CEO should be Hong Kong-based. And finally, to be clear, I look forward to chairing the next AGM in 2011."
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