Lloyds has named Charlie Nunn, a senior banker at rival HSBC, as its next chief executive
LloydsBank named Charlie Nunn, head of wealth and personal bankingat rival HSBC, as its next CEO on Monday.
- Current Lloyds boss Antonio Horta-Osorio is stepping down in 2021 after a decade at the bank.
- Nunn may not take up his new job for almost a year from now, because of his notice period and other restrictions. If Horta-Osorio leaves first, CFO William Chalmers could step in as interim CEO, Lloyds said.
- Nunn has agreed to a lower pay package than his predecessor, with his potential pay set at around £5 million ($6.7 million).
Britain's biggest domestic lender
Nunn will replace long-standing Lloyds boss Antonio Horta-Osorio, who in July said he would step down in 2021 after a decade at the helm.Nunn will be charged with steering Lloyds, seen as a bellwether for Britain's economy, through the fallout from the COVID-19 pandemic and an era of rock-bottom central bank interest rates.
Shares in Lloyds, which said earlier this month it is cutting more than 1,000 jobs, are down 40% this year, although they have rallied a third since the start of November following news of breakthroughs in the race to find a vaccine against COVID-19.Lloyds shares gained 1% on Monday.
CFO William Chalmers would become acting CEO if Horta-Osorio left the bank before Nunn joins, Lloyds said.
"We see this as a strong appointment, likely leading to a major strategic evolution at Lloyds which we see as necessary," Goodbody analyst Colin Jackson said in a note.Nunn, a former McKinsey and Accenture consultant, who joined HSBC in 2011, was appointed to his current role in February following a management reshuffle by CEO Noel Quinn.
At HSBC, colleagues said he was known for his structured approach and for a focus on upgrading digital capabilities. He emerged in February as one of the winners of HSBC's latest executive reshuffle, taking over the bank's newly combined wealth and personal banking divisions.
HSBC said in a separate memo that Nuno Matos, currently head of its non-ringfenced British arm, is to replace Nunn.
Pay cutAt Lloyds, Nunn will receive a lower pay package than his predecessor. Lloyds said he had agreed to lower bonuses than the policy allowed, reducing his maximum potential pay by 20%.
Incoming chairman Robin Budenberg has also asked for his pay package to be cut by 20%, Lloyds said.Read more: The 5 highest-paid CEOs in the financial services industry an earned average of $27.9 million each in 2019. Meet the CEOs from Morgan Stanley, JPMorgan Chase, Bank of America, Citigroup, and Goldman Sachs
Lloyds' pay policy for senior executives has faced long-running criticism. One third of balloted shareholders voted against the bank's pay policy at its investor meeting in May.Nunn will receive a basic annual salary and a fixed share award of £1.1 million ($1.50 million) each, in addition to flexible benefit funding of 4% of basic salary, Lloyds said in a statement. His pension has been set at 15% of his salary.
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