UCG Unicredit Spa

By Margot Patrick and Simon Clark 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (February 25, 2020).

HSBC Holdings PLC said it would continue looking for a new chief executive while it considers permanently appointing interim CEO Noel Quinn, after UniCredit SpA boss Jean Pierre Mustier withdrew from talks about the job.

HSBC's board started looking for a new CEO last fall, after ousting former head John Flint and installing Mr. Quinn. He is the only internal candidate, the bank has said. Last week, HSBC Chairman Mark Tucker, who is leading the search, said the board intends to stick to a six to 12-month time frame it set in August to fill the role, and that the process has been "very thorough and rigorous."

After reports last week that the race had narrowed to Messrs. Mustier and Quinn, UniCredit on Monday issued a statement saying Mr. Mustier has confirmed he will remain at the bank. The French-born CEO hadn't received an offer to go to HSBC but had emerged as the leading external candidate, The Wall Street Journal reported Friday.

A spokeswoman for HSBC on Monday said the search "remains ongoing," indicating Mr. Quinn won't get the job by default. "We said six to 12 months and we continue to work to that timeline," she said.

Analysts on Monday said that stance undermines Mr. Quinn's credibility as the bank embarks on a strategic overhaul announced by the interim CEO last week. They said it also raises questions about the board's judgment to string out the process while Mr. Quinn moves to cut thousands of jobs and reallocate capital away from Europe and the U.S. and into Asia.

"To not be elected by the time he was announcing the new strategy looks like there is a lack of support for him," said John Cronin at Goodbody Stockbrokers." It's just bizarre to let him announce the strategy without having assurance he's got the job."

Mr. Tucker has previously said the board gave Mr. Quinn full authority from day one to make strategic changes and address areas of weakness. In August, he said Mr. Quinn would bring "pace, decisiveness and ambition." The bank has never hired a CEO from outside and Mr. Tucker, who started in 2017, was the bank's first externally-selected chairman.

Mr. Quinn is the bank's former head of commercial banking and has been at HSBC since 1987. He has said he aims to make the job permanent.

Write to Margot Patrick at margot.patrick@wsj.com and Simon Clark at simon.clark@wsj.com

(END) Dow Jones Newswires

February 25, 2020 02:47 ET (07:47 GMT)

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