Michael Geoghegan

Michael Francis Geoghegan CBE (born 4 October 1953) is an international banking business executive, who served as the chief executive (CEO) of HSBC from 26 March 2006 to 31 December 2010. He joined HSBC in 1973 and had previously led the group's South American and European operations.[1]

Michael Geoghegan
Born
Michael Francis Geoghegan

(1953-10-04) 4 October 1953
NationalityBritish
OccupationBanker
Known forFormer CEO, HSBC

Early life and education

Michael Geoghegan was born in Windsor, UK, and was educated in the UK and Ireland.

Professional career

Early career : 1973 - 2006

He joined HSBC in 1973 as an international manager and, since then, spent twelve years in North and South America, eight years in Asia, seven years in the Middle East and three years in Europe. Geoghegan arrived in Brazil in March 1997 to establish the Group's operations in the country following the creation of Banco HSBC Bamerindus S.A. He was appointed a group general manager of HSBC Holdings plc in the same year.

In January 2000, as president of HSBC Bank Brasil S.A.- Banco Multiplo, he became responsible for all of HSBC's business throughout South America and chaired the group's regional executive committee. In October 2000 he became President of HSBC Investment Bank Brasil HSBC Seguros S.A. which resulted from the Group's acquisition of CCF and the incorporation of certain activities of HSBC Brasil.

Once Geoghgan was appointed chief executive and a director HSBC Bank plc on 1 January 2004, he gave up the position of UK CEO on 6 March 2006 which was in turn filled by Dyfrig John.

Group CEO of HSBC: 2006 - 2010

HSBC announced on 28 November 2005 that he would succeed Stephen Green as Group Chief Executive of HSBC Holdings, as Green became Group Chairman. Geoghegan was named Deputy Chairman of HSBC Bank plc 26 May 2006. In that management shuffle, the group management board was created in 2006. Before that, the chairman essentially held the duties of a chief executive, while the chief executive served as the deputy. Green said he wanted to break that tradition, having a management cadre to look after the business, while the chairman would oversee the controls of the business through compliance and audit and the direction of the business.[2]

Geoghegan was paid an annual salary of £1,070,000 for his role as chief executive. [3][4]

He shifted the chief executive's office of HSBC Group from London to Hong Kong on 28 January 2010, while the chairman remained in London. He became the chairman of The Hong Kong and Shanghai Banking Corporation.

With group chairman Stephen Green planning to depart HSBC to accept a government appointment as Minister of Trade, Geoghegan was expected to become the next chairman. However, many shareholders instead pushed for an external candidate. Geoghegan's detractors noted that while he was effective at getting things done, they argued that his blunt style was unsuited to leading the board and representing HSBC with heads of government, and his appointment as chairman would also flout UK governance guidance that discouraged chief executives becoming chairman. Geoghegan had reportedly threatened to quit if he was passed over in favour of former Goldman Sachs President John L. Thornton.[5][6] HSBC's board of directors had reportedly been split over the succession planning, and investors were alarmed that this row would damage the company.[7]

On 23 September 2010, Geoghegan announced he would step down as chief executive of HSBC. [8] He was succeeded as chief executive of HSBC by Stuart Gulliver, while Green was succeeded as Chairman by Douglas Flint; Flint was serving as HSBC's finance director (chief financial officer). Geoghegan remained with HSBC as an adviser until 30 June 2011. In an interview after he retired, Geoghegan stated that he was proud that Flint and Gulliver were chosen to lead HSBC.[2]

Controversies

Following a 2011 US senate investigation into charges of money laundering against HSBC Mexico, Michael Geoghegan left HSBC. Subsequently, HSBC Chairman Douglas Flint admitted that the bank was considering a bonus clawback procedure against Michel Geoghegan and Sandy Flockhart linked to the record settlement between HSBC and the United States Department of Justice[9]

In April 2016 Geoghegan was named as one of the clients of Panamanian corporate service provider Mossack Fonseca, and The Guardian newspaper reported on his legal use of offshore firms to "manage his wealth".[10] It was also revealed that Geoghegan held his Kensington townhouse through an offshore company, and planned avoiding paying taxes by renting the property to himself.[10]

Political views

Opposition to public spending cuts

Though generally in favor of reducing public spending, Geoghegan warned in 2010 not to cut spending too the extent that it is "cutting into the muscle" of the western world", which could lead to social conflict and strikes.[11]

Comments on Brexit

In April 2016, Geoghegan wrote an op-ed in the Financial Times, in which he argued in favor of Brexit.[12] He argued that claims of what could happen to The City in case of Brexit were exaggerated and that, upon leaving the EU, the UK would move into a position of strength "because Europe needs Britain far more than Britain needs Europe," deriving from the assumption that Brussels would seek to retain unfettered access to the UK and because Britain imports more goods from Europe than are being sold there.[12] However, Geoghegan urged Brexit campaigners to acknlowledge he EU's laudable ambition to prevent another devastating European war.[12]

In May 2016, Geoghegan and Peter Udale, an independent risk consultant, wrote a paper supporting the UK leaving the European Union.[13] They argued that the Bank of England has "given the impression that all the risks lie on the leave side", and that London has allowed the EU to impose an excessive amount of regulations on the financial sector, lost control to the Eurozone states, as well as key governmental powers such as the ability to set taxation.[13] The paper concluded that "a vote to leave would allow the UK to take back control over the City, would reduce the risk of future euro-contagion to the UK financial services sector and the wider UK economy, would return primacy over areas such as taxation to the UK and, over the long term, would make the City a more competitive, prosperous global financial centre."[13]

Personal life

Geoghegan is married with two sons.[14] In June 2003 he was appointed a Commander of the Order of the British Empire (CBE) in recognition of his contribution to British business interests in Brazil.[15] Geoghegan is not a UK resident and has non-domiciled tax status.[10]

gollark: *Are* there cons beyond "sometimes it blocks things overaggressively"?
gollark: Or don't imagine it, unless you want imaginary adverts?
gollark: Yes, imagine NOT blocking all advertisements.
gollark: But more trees → more sequestered carbon → more good.
gollark: The obvious solution is laser-launched planes.

References
  1. "HSBC Replaces An Irreplaceable CEO". Forbes. Archived from the original on 30 September 2010. Retrieved 11 March 2013.
  2. Reece, Damian (20 December 2010). "HSBC ex-chief Michael Geoghegan relaxes as another marathon looms". The Daily Telegraph. London.
  3. "M. F. Geoghegan Profile". Forbes.com. Forbes. Retrieved 8 August 2009.
  4. "Michael Geoghegan: Executive Profile & Biography". BusinessWeek. McGraw-Hill. Retrieved 8 August 2009.
  5. Wilson, Harry; Farrell, Sean; Aldrick, Philip (22 September 2010). "HSBC investors against Michael Geoghegan becoming chairman". The Daily Telegraph. London.
  6. "HSBC chief Michael Geoghegan 'to quit' after failing to get top job". NewsCore. 24 September 2010.
  7. Wilson, Harry (23 September 2010). "Douglas Flint to be HSBC chairman, Michael Geoghegan to leave in radical reshuffle". The Daily Telegraph. London.
  8. "Great HSBC reshuffle".Euromoney
  9. https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9439520/Former-HSBC-chiefs-faces-bonus-clawbacks.html
  10. Watt, Holly; Pegg, David (7 April 2016). "Former HSBC boss tried to avoid tax on £8m Kensington house". The Guardian. London. Retrieved 7 April 2016.
  11. McDonald, Henry (6 August 2010). "HSBC chief warns against savage cuts in public sector". The Guardian. ISSN 0261-3077. Retrieved 6 September 2017.
  12. Geoghegan, Michael (27 April 2016). "The City of London can survive and thrive after Brexit". Financial Times.
  13. "Former CEO of HSBC: Brexit would make London a 'prosperous global financial centre'". Business Insider. Retrieved 6 September 2017.
  14. Blackhurst, Chris (1 September 2009). "Michael Geoghegan on how HSBC beat the crash". Management Today. Archived from the original on 17 April 2016. Retrieved 7 April 2016.
  15. "Michael Francis Geoghegan CBE". Businessweek. Retrieved 19 March 2013.

Sources
Business positions
Preceded by
Stephen Green		 Group Chief Executive of HSBC Group
2006 – 2011		 Succeeded by
Stuart Gulliver
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