24th Jul 2014 07:53
LONDON (Alliance News) - Standard Chartered PLC Thursday dismissed media reports that succession planning is taking place as a result of investor pressure, as the board gave its backing to Chief Executive Peter Sands and Chairman John Peace.
"The board wants to be absolutely clear that it is united in its support of both Peter Sands and Sir John Peace, and the management team, in delivering the refreshed strategy, restoring the bank to profitable growth and delivering returns for our shareholders," Standard Chartered said in a statement.
Standard Chartered said that it has "robust and considered" succession plans for all of its senior leaders. The bank added that it takes board succession "extremely seriously" and discusses the matter with shareholders on a regular basis.
"We will ensure orderly succession takes place at the appropriate times, and only in a responsible manner consistent with full market transparency," Standard Chartered said.
The statement follows a report in the Financial Times that said that John Peace "is weighing" a succession plan that could result in the replacement of Chief Executive Peter Sands. The report, which cited three people familiar with the matter, said that shareholders have urged John Peace to conduct a search over the next 12 months.
The FT said that both internal and external candidates would be assessed under the plans being urged. It added that Peace may resign after a new CEO is appointed and firmly established in the role.
Standard Chartered has come under increasing pressure in the past few months, with a number of executive departures, including that of Richard Meddings, who guided the bank as finance director through the financial crisis and beyond, adding to woes of falling profitability. In June, Standard Chartered said that it expects its first-half operating profit to be down by about 20% when it reports its interim results in August, hit by a poor performance in its financial markets business.
Standard Chartered shares were Thursday morning quoted down 0.4% at 1,217.50 pence.
By Samuel Agini; [email protected]; @samuelagini
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