StanChart Board In Singapore For Crunch Talks

Directors of Standard Chartered will meet in Singapore next week amid growing investor pressure for the underperforming bank's chairman and chief executive to step down.

Sky News understands that the emerging markets lender will hold a board meeting next Tuesday, which will be followed by discussions with leading shareholders in Hong Kong later in November.

Insiders said on Friday that succession plans for Sir John Peace, Standard Chartered's chairman, and Peter Sands, the chief executive, were not formally on the agenda for next week's board meeting.

However, disgruntlement among big shareholders is intensifying following this week's profit warning, the third this year, from the Liverpool FC shirt sponsor.

There is also mounting concern about the reopening of an investigation by US authorities into whether Standard Chartered had concealed transactions that were in violation of sanctions laws when it was negotiating a settlement in 2012.

The original deal with regulators triggered a $667m fine, but the consequences of a fresh probe could be much more severe for the bank.

One top-20 shareholder expressed a desire for Sir John to hand over the chairmanship as quickly as possible.

"We don't believe he is the right man to oversee the selection of the next chief executive," the shareholder said.

Another large investor said change at the top was required.

"My view is that at some stage fresh capital will be needed and that part of that will probably involve a change in leadership."

The holdings of the two critical shareholders are modest by comparison with that of Temasek, the Singaporean state fund, which owns nearly 18% of Standard Chartered's shares.

Temasek is not agitating for changes at the top of the board, according to a person familiar with its views.

Sky News understands that Egon Zehnder International, the executive search firm, has a brief from Standard Chartered to work on further boardroom changes.

In a statement, Standard Chartered told Sky News:

“The board is united in its support of both Peter Sands and Sir John Peace, and the management team, to deliver the refreshed strategy, restore the bank to profitable growth and deliver returns for our shareholders.

“We are taking action to position ourselves for growth and the enormous opportunities our markets present.

"We are exiting non-core businesses, reducing costs, actively de-risking certain portfolios and shifting capital and investment spend to the most attractive opportunities.

"We are confident in our ability to translate all of this into sustained value creation for our shareholders."