HSBC Holdings plc’s board is facing internal divisions as it searches for a permanent chairman to succeed Mark Tucker, who stepped down at the end of September 2025. The disagreement centres on differing views of which candidate has sufficient financial-services credentials and Asia-market experience to lead one of Europe’s largest banks. 

The bank announced earlier this year that Tucker would leave his post, and in the interim the board appointed Brendan Nelson as interim chairman. But the search for a permanent successor has hit a snag, with board members unable to agree on which profile should be prioritised. Some point to deep banking experience, others insist on Asia knowledge and regional credibility. 

Among the names reportedly in contention are former UK Chancellor George Osborne, whose experience includes government and advisory roles, but who lacks a strong banking-leadership background. Other candidates include financial-industry veterans such as Naguib Kheraj and Kevin Sneader, each of whom bring significant banking or consulting credentials. 

The board’s difficulty appears to stem partly from timing and succession planning. Sources say HSBC did not launch its external search early enough, because the expectation was that Tucker would remain in his role into 2026. That delay left a narrower candidate pool and raised governance questions about preparedness for one of the most critical non-executive roles in banking. 

What’s happening now is that the bank must balance several competing imperatives. On one hand, the chairman must understand the global regulatory environment, have credibility with investors and regulators in the UK, U.S. and Europe, and navigate the bank’s complex governance structure. On the other hand, HSBC’s major business remains in Asia and so the chair must have deep familiarity with Asia-Pacific markets. The indecision over which priority to emphasise reflects competing stakeholder views. 

For the banking sector and investor community the implications are significant. Chairman appointments are far more than ceremonial – they signal strategic direction, governance culture and board oversight quality. In HSBC’s case, uncertainty in the chair succession may weigh on stakeholder confidence, especially as the bank is navigating cost-cuts, regulatory pressure and Asia-market exposure. The longer it remains with an interim chair, the more it may risk investor questions about governance discipline and strategic alignment.

One subtle but important dimension is compensation. Sources suggest that the chairman’s pay (reported around £1.6 million for Tucker in 2024) is modest compared with current compensation levels for banking executives and may limit some candidates’ interest in the role.  If high-profile external candidates perceive opportunity cost in accepting the role, that raises practical constraints on HSBC’s succession outcome.

What many observers are missing is how this succession phase illuminates broader shifts in banking governance. The debate over whether to rely on an internal candidate with banking pedigree or an external figure emphasises how large banks are grappling with the trade-off between continuity and fresh perspective. For HSBC the question is acute: should it prioritise someone who knows its internal culture and operations, or someone who brings external independence and a fresh strategic lens? The board’s division shows there is no easy answer.

As the search progresses, shareholders will look closely at how HSBC manages the process, including transparency, candidate pool diversity and the timeline for appointment. Regulators are also watching: delayed or opaque succession at a major bank raises questions about board oversight and succession planning — key governance metrics in financial-services regulation.

In conclusion, HSBC’s board division over the next chairman is more than a personnel story. It reflects deeper strategic questions about the bank’s future, how it views Asia versus Europe, internal continuity versus external overhaul, and how it communicates governance strength to the market. The choice of chair will send a signal about what HSBC values most in its next phase of global banking.