Newly-Installed Standard Chartered CEO Sets Out Management Team

Tom Burroughes

21 July 2015

UK-listed has set out its new management team as the bank, which earns the bulk of its revenue in regions such as Asia, moves on under the helm of new chief executive Bill Winters, who replaced Peter Sands in June. Standard Chartered is aiming to deliver $1.8 billion of cost savings by the end of 2017, as previously announced.

The bank, whose services include wealth management, has been through a testing period – before his departure, Sands had been under pressure over a period of disappointing results. (To see the most recent figures from the bank, click here.)

In its statement on the changes, the bank said the new team will set out a plan to address future performance by the end of this year. Standard Chartered is also simplifying its geographic and client segment structure to cut costs and speed up decision-making. Among changes relevant to wealth management is that the commercial and private banking segment will include wealth management and will be led by Anna Marrs.

The new regional businesses and client businesses report to Winters with effect from 1 October. After the structure is phased in from that date, it will be fully in place by the start of 2016.

Shares in the bank were up 1.43 per cent around midday in London.

The change in structure comes at a time when a number of banks have seen leadership changes, sometimes with business performance issues in question; Deutsche Bank recently announced an overhaul and Barclays, a UK-listed bank, recently announced the departure of Antony Jenkins. In the latter case, non-executive directors praised Jenkins' work but are demanding a faster pace of strategic change. The sometimes precarious nature of the CEO role was also demonstrated last week by the departure of Martin Wheatley, head of the UK’s Financial Conduct Authority.

Team
Standard Chartered will be overseen by a new 13-strong management team, comprising the three group executive directors, plus client and regional CEOs and functional heads, according to the statement.

"The group needs to kick-start performance, reduce its cost base and bureaucracy, improve accountability, and speed up decision-making. The new structure will help achieve all of these critical objectives and will be in place as we communicate a comprehensive plan to address the group's performance by the year end,” Winters said.

The team is: Winters, group CEO; Mike Rees, deputy group CEO; Andy Halford, group chief financial officer; Tracy Clarke, group compliance and HR head and regional CEO, Europe and Americas; Mark Dowie, interim CEO, corporate and institutional banking; Karen Fawcett, CEO, regional banking; David Fein, group general counsel; Michael Gorriz, group chief information officer; Doris Honold, group chief operating officer; Ben Hung, regional CEO, Greater China and North Asia; Sunil Kaushal, regional CEO, Africa and Middle East; Marrs, CEO, commercial and private banking; and Pam Walkden, interim group chief risk officer.

Among other changes, the bank said Winters will assume responsibility for all three client businesses from Rees on 1 October. Rees will work with Winters on forming and carrying out the strategy and play an important role with Standard Chartered’s larger clients; he will also take on responsibility for branding and marketing from the start of October.

Halford will take responsibility for the group investor relations function, as well as corporate real estate services and global sourcing from 1 October.

Group structure
Besides the commercial and private banking segment adjustment mentioned above, other changes made were to corporate and institutional banking. This segment will include transaction banking, corporate finance and financial markets, led by Dowie.

Retail banking will include retail products and will be led by Fawcett.

C&IB will operate as a global business. Retail banking and commercial banking will be run on a country basis with regional oversight, with client and product strategy delivered by smaller and more efficient central teams under Fawcett and Marrs, respectively.

Geography
Standard Chartered said its geographical structure will be rationalised from eight existing regions into four new regional groups:
- Greater China and North Asia, including Hong Kong, China, Korea, Japan and Taiwan, led by Hung;
- ASEAN and South Asia, which includes Singapore, Malaysia, Indonesia, India and Bangladesh, led by Ajay Kanwal;
- Africa and Middle East, which includes Southern, West and East Africa, Pakistan and the UAE, led by Kaushal; and
- Europe and Americas, including the UK and the US, led by Clarke.