Lloyds Bank names new CEO - with insurance "to be a focal point"

Earlier this year a number of names were being touted to replace Antonio Horta-Osório as group CEO of Lloyds Banking Group Plc (Lloyds), with RSA Insurance Group chief executive officer Stephen Hester named among the top candidates. Today, the group has revealed that Charlie Nunn of competitor HSBC will be undertaking the role. Horta-Osório, who had announced his plans to leave by June 2021 after a decade in the hotseat, had been responsible for leading the business’s strategy of moving into insurance and wealth management to diversify revenue.

A report by Bloomberg highlighted Goodbody analysts who believe that insurance and wealth are “likely to be a focal point” going forward and that Nunn’s extensive strategy experience will benefit the board as it looks to establish and execute the next stage of the business’s strategic transformation plan. 

The appointment of Nunn, who is currently chief executive of wealth and personal banking at HSBC, follows several significant personnel changes at Lloyds including the appointment of Robin Budenberg as its new chairman, effective January 01, 2021. In a press release announcing Nunn’s appointment, Budenberg said he was excited about the incoming CEO’s vision for the group and his commitment to Lloyds’ purpose of helping Britain prosper.

“Given his career track record, he will bring world class operational, technology and strategic expertise to build on the strengths of the existing management team,” he said. “I look forward to welcoming him to the group." Current chairman Lord Blackwell said he was pleased the leadership succession had been completed and that he was confident that Nunn and Budenberg would provide the strong leadership required to carry forward the strategic transformation of the group.

When Nunn takes up his new role is subject to agreement with HSBC where his contact of employment includes a six-month notice period and up to six months of post termination restrictions. Should Horta-Osório step down ahead of Nunn’s appointment then it is expected that, subject to regulatory approval, Willian Chalmers, group CFO would take on the additional role of acting group CEO for the interim period.

Nunn will receive a basic salary of £1,125,000 as well as various share awards. In aggregate, the maximum remuneration level that Nunn would receive is about 20% less than that of Horta-Osório, and Budenberg has requested that his own remuneration package also be reduced by 20%. Nunn will also be privy to a ‘lost opportunity’ bonus award on hire or as soon as practicable thereafter to acknowledge that he will lose his expected bonus awards from HSBC for the 2020 performance year.

Source: Insurance Business Uk