As part of an orderly succession plan balancing stability with fresh perspective, the board of Standard Chartered plc (the Group) has announced a comprehensive package of changes to its board.
Current group chief executive, Peter Sands, is to stand down from the board, giving way to the announcement of William Thomas Winters as the new group chief executive with his appointment to the board taking effect in June 2015.
The comprehensive changes to the board also extends to the topmost levels as current chairman, Sir John Peace has indicated an intention to step down from the board during the course of 2016, allowing time for Bill Winters to transition into his new role and to ensure board level continuity.
Speaking about the ongoing transitions, Sir John Peace stated that “Bill Winters is a globally respected banker and has the right experience and skills to drive the Group’s new phase of growth. He brings substantial financial experience from leading a successful global business and has an exceptional understanding of the global regulatory and conduct environment. He’s also a proven leader with a strong track record in nurturing and developing talent.”
He said in praising the group chief executive that “Peter Sands has made an immense contribution to the success of the Group and has had a transformative impact during his 13 year tenure as both group chief executive and previously as group finance director.
”Since becoming group chief executive in 2006, the Group has more than doubled in size, has been consistently profitable and has returned over $12 billion of dividends to shareholders. His leadership and insight, over a period of huge change and challenge for the entire industry, ensures he leaves the Group well placed to achieve its full potential as one of the world’s leading financial institutions.”
In duly commending the efforts of his soon-to-be predecessor, Bill Winters express that “Peter Sands and the team have forged Standard Chartered into one of the truly great opportunities in global banking. It’s a special bank. I’m struck by its amazing network, respected brand and powerful client relationships across the countries which will drive the future growth of the world economy. I am looking forward to working with Sir John Peace, the board and the staff to ensure that Standard Chartered achieves its full potential, and delivers value for the shareholders, clients and communities it serves.
The banks current group chief executive Peter Sands was not left out as he vocally expressed his delight with the transition process stating that “After more than eight years as Group Chief Executive, now is the right moment to hand over to new leadership. Bill and the team will inherit a more focused and efficient bank with a superb client franchise and a unique network across some of the most dynamic markets in the world. It has been my privilege to lead the people of Standard Chartered through a period of extraordinary turbulence and growth. I am delighted that a banker of Bill’s calibre will be leading the Group through the next phase of development.”
Further announcement on the bank’s changes to its broader board composition in line with its multi-year succession plan include; Jaspal Bindra, group executive director/CEO, Asia, after a long and successful 16 year career with the Group, stepping down from the board, with effect from 30 April 2015 and will be leaving the Group shortly thereafter.
Ruth Markland, senior independent director and Paul Skinner, independent non-executive director, who have both served on the board since November 2003, will also retire from the Board by the end of 2015. Ruth will continue as SiD until she retires but will step down from her role as Remuneration Committee Chair with effect from the conclusion of the AGM on 6 May 2015.
Christine Hodgson, who joined the board in September 2013, will be appointed as Remuneration committee chair with effect from 7 May 2015. In addition, Oliver Stocken, who has served on the board since June 2004, will step down on February 28, 2015.
The bank’s intention in streamlining the board is for it to consist of 14 directors in due course. As such, two new iNEDs Gay Huey Evans and Jasmine Whitbread will be joining the board effective from April 1, 2015.The bank states that it will be publishing the preliminary announcement of 2014 Results as scheduled on Wednesday, March 4, 2015, and that all above appointments have received the necessary regulatory approval.
In concluding, the bank also shares a remuneration statement in relation to the board changes. On appointment, Bill’s Winters annual base salary will be GBP1,150,000. He will receive standard benefits including an expenses allowance, pension provision, medical cover and life assurance, as well as receiving a fixed pay allowance equal to one times base salary delivered in shares which can be realised over five years.
Peter Sands will continue to receive his current salary, pension and benefits up until December 31, 2015. He will receive on termination a payment in lieu of notice (“PILON”) equal to just under two months’ salary, pension and other benefits. This PILON will be subject to a duty to mitigate in the event that he finds alternative employment. Jaspal Bindra will continue to receive his current salary, pension and benefits up until February 25, 2016. In addition, he is eligible to a statutory payment on termination provided for by Hong Kong employment law. This amount is equivalent to approximately $35,000.
