HSBC names bank veteran John Flint as its new CEO

Credit Crunch Fails To Wipe Out HSBC Profit

Europe's largest bank, which is based in London, said Mr Gulliver would retire on 21st February to be replaced by the HSBC veteran, who now heads its retail banking and wealth management divisions.

In a statement to the stock market on Thursday morning, the bank confirmed reports about potential Flint's appointment.

Chairman Mark Tucker, who led the search, said: "John has broad and deep banking experience across regions, businesses and functions".

"It's good news - it's important to mix an insider with the new outside chairman and continue on the path set by the current team", said Hugh Young, head of Asia at Standard Life Aberdeen, one of the bank's top ten shareholders. He joined HSBC in 1989 and spent 14 years in Asia at the start of his HSBC career.

As chief executive, Mr. Flint will receive an annual salary of 1.2 million pounds, or about $1.6 million.

Flint will take over on February 21 for the retiring Stuart Gulliver. He also will receive a fixed pay allowance of £1.7 million a year and an annual pension allowance of £360,000, as well as discretionary variable pay and a long-term incentive award based on the bank's performance.

He will take over the bank following a period of regulatory turmoil for the sector - with HSBC no stranger to the controversy.

But the bank still faces a tough challenge to meet its long term goal of making a better than 10 per cent return on equity.

HSBC is carrying out a sweeping overhaul to increase profitability. He moved back to London in 2004, and has represented HSBC in Hong Kong, Singapore, Indonesia, Thailand, India, Bahrain, and the U.S. He has previously served as the bank's treasurer, chief executive of its global asset management business, and as chief of staff for Mr. Gulliver.

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