HSBC has a new chair but the succession process should have been slicker

This is the UK’s second-largest listed company, and the European bank most exposed to declining US-China relations

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t turns out that Sir Mark Tucker, 67, retired as chair of HSBC in September to make way for an older man. Say hello to Brendan Nelson, 76, a former KPMG partner, who has been doing the job on an interim basis for a couple of months but was regarded as a rank outsider to get the gig permanently.

Just how permanent remains to be seen because the HSBC chief executive, Georges Elhedery, clearly unaware that Nelson had thrown his hat into the ring, appeared to rule him out when speaking at an FT conference only on Monday. He said Nelson didn’t wish to do a full term of six to nine years, a remark that didn’t feel controversial at the time. After all, while US presidents may go on into their 80s these days, chairs of globally important banks tend not to.

Nelson has been an HSBC non-executive director for two years, so should know the bank’s unique vibe by now. He’s also done time on the boards of BP and post-crisis Royal Bank of Scotland/NatWest during periods of boardroom rough and tumble. Those are not insignificant qualifications for the role, and when the balance sheet is as complex as HSBC’s, top-level audit experience helps.