Standard Chartered reshuffles board, unveils entitlements’ package
STANDARD Chartered Bank Plc has unveiled a comprehensive changes to its board as the current Group Chief Executive Officer, Peter Sands, would stand down, giving way to William Thomas Winters as the new helmsman of the financial institution with effect from June 2015.
The change, which also extended to the topmost levels, would see the current Chairman, Sir John Peace, step down in 2016, as he voluntarily indicated, allowing time for Bill Winters to transition into his new role and ensure board level continuity.
Meanwhile, in a statement from the bank, Winters’ yearly base salary on resumption as the Chief Executive, is put at 1,150,000 British pounds, as well as 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.
Also, Sands will continue to receive his current salary, pension and benefits up until 31 December 2015 and on termination, a payment in lieu of notice equal to just under two months’ salary, pension and other benefits.
The payment sum will be subject to a duty to mitigate in the event that he finds alternative employment.
Speaking on the proposed changes, the bank’s Chairman, 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.”
But commending the current Chief Executive Officer, Sands, he said: “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.”
Meanwhile, further announcement on the bank’s changes to its broader board composition in line with its multi-year succession plan include Group Executive Director and Chief Executive Officer, Asia, Jaspal Bindra, 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.
Bindra will continue to receive his current salary, pension and benefits up until February 25, 2016 and is eligible to a statutory payment on termination provided for by Hong Kong employment law, which is equivalent to approximately $35,000.
The Senior Independent Director, Ruth Markland and Independent Non-Executive Director (iNED), Paul Skinner, who have both served on the board since November 2003, will also retire by the end of 2015.
However, Ruth will continue in her position until she retires but will step down from her role as Remuneration Committee Chair with effect from the conclusion of the yearly general meeting on May 6, 2015.
Also, Christine Hodgson, an iNED, who joined the board in September 2013, will be appointed as Remuneration Committee Chair with effect from May 7, 2015, while Oliver Stocken, an iNED, who has served on the board since June 2004, may have stepped down at the weekend.
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