New bank chief
Lloyds hires HSBC’s Nunn as chief executive
Charlie Nunn will replace Antonio Horta-Osorio
Lloyds Banking Group, which embraces Bank of Scotland, Scottish Widows and Halifax, has appointed HSBC wealth boss Charlie Nunn as group chief executive to succeed Antonio Horta-Osorio.
Mr Nunn joined HSBC in 2011 and has been global chief executive, wealth and personal banking since February 2018.
He will earn a basic salary of £ 1,125,000 and a fixed share award of £ 1 ,050,000 as well as a flexible benefit funding of 4% of basic salary.
He began his career at Accenture where he worked for 13 years in the US, France, Switzerland and the UK and became a partner. He then moved to McKinsey & Co. as a senior Partner for five years.
Charlie Nunn: feeling lucky
Robin Budenberg, non-executive director and incoming chairman from 1 January, said “I am excited about Charlie’s vision for Lloyds Banking Group, as well as his passion for and commitment to our 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.”
Mr Nunn said “I feel particularly lucky to be joining Lloyds Banking Group at this important time. Lloyds’ history, exceptional people and leading position in the UK means it is uniquely placed to define the future of exceptional customer service in UK financial services. I look forward to building on the work of António and the team and their commitment to helping Britain prosper.”
The appointment follows a rigorous selection process managed by Robin Budenberg, Lord Blackwell and Alan Dickinson, deputy chairman and senior independent director.
The date at which Mr Nunn takes up his role will be subject to agreement with his current employer where his contract of employment contains a six month notice period and up to six months’ post termination restrictions.
In the event that Mr Horta-Osório steps down ahead of Mr Nunn’s appointment, William Chalmers, group chief financial officer, is expected to take on the additional role of acting group CEO for the interim period.
AJ Bell investment director Russ Mould said: “The next man in the hot-seat at Lloyds faces a pretty stiff test. While Antonio Horta-Osorio’s long reign has been a mixed bag, he did achieve some of the big milestones in the recovery from the credit crunch. Perhaps most notably was the long-awaited return to the dividend list.
“While the pandemic has forced a new dividend hiatus it is hard to believe the reintroduction of the payout under his appointed successor Charlie Nunn will register quite the same impact.
“Poaching Nunn from a senior role at rival HSBC may feel like a coup but it is fraught with some complication given his notice period and other restrictions – Lloyds needs the transition to be as smooth as possible given the rough waters it is entering, with Horta-Osorio already slated to depart next June.
“Horta-Osorio was leading Lloyds out of a crisis, yet Nunn will be leading the company as it heads straight into one – with the full impact of the coronavirus pandemic on the economy yet to hit.
“As unemployment mounts, the company is likely to see pressure on its credit book and while the PPI scandal is the rear-view mirror, Nunn will still face an ultra-low interest rate environment and a tough regulatory backdrop.
“The good news is that Lloyds’ balance sheet is in a much better position to absorb bad debts than it was back in 2007/8.”