Standard Chartered denies rumours of CEO succession

24th Jul 2014 07:18

Standard Chartered batted away rumours that Chief Executive Peter Sands or Chairman Sir John Peace might be replaced in light of recent disappointing results. The bank said in a statement that it did "not accept" the media rumours. "No succession planning is taking place as a result of recent investor pressure."It added: "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."The Financial Times on Wednesday reported that Peace, under intense pressure from shareholders, was "weighing a succession plan" for Sands, and has been urged to conduct a search both internally and externally over the next 12 months, citing three people familiar with the matter, and added that the chairman could himself resign once a new chief was bedded in.But Peace has now also since released a personal statement to reinforce the message, saying "I have not begun work on a succession plan to replace Peter Sands as CEO." The statement added that "robust and considered" plans were already in place for all of the senior members of management and that the board engaged in discussions on the topic 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," it said.The bank's shares have been on the slide over the last 12 months, with a June 26th pre-close trading update disappointing the market further with a 3% fall in revenues at constant currency in the first six months of the year.OH