StanChart appoints Naguib Kheraj senior independent director
Martin Arnold, Banking Editor
FT Bankers breakfast in the braken room. Picture shows Naguib Kheraj, Senior Advisor at Barclays.
Naguib Kheraj will lead the search for a successor to Sir John Peace as chairman of StanChart
Naguib Kheraj has been appointed senior independent director of Standard Chartered, putting the former Barclays executive in charge of finding a replacement for Sir John Peace as chairman.
Mr Kheraj will replace Ruth Markland, who is stepping down this year as part of a wider boardroom clear-out that included the arrival of Bill Winters to replace Peter Sands as chief executive of the emerging markets-focused bank.
Previously mooted as a potential candidate to be the bank’s next chairman, Mr Kheraj joined its board as chairman of the audit committee in January 2014 after an eclectic career that included a spell as the Barclays finance director before the financial crisis struck.
A senior adviser to the Aga Khan Development Network, he previously advised the UK financial regulator and the National Health Service, as well as doing stints as an executive at JPMorgan Cazenove and Lazard. A person familiar with the situation said Mr Kheraj had indicated he would not be a candidate to be StanChart’s next chairman.
Over the past two years StanChart, which specialises in Asia, the Middle East and Africa, has been rocked by a faltering financial performance, sliding share price, scrapes with US regulators and concern that it may be short of capital compared with its peers.
The shake-up has led to the departure of several senior executives and the announcement that Sir John will stand down as chairman next year.
As the senior independent director, Mr Kheraj will lead the search for Sir John’s successor. The search has only recently started and the board is close to appointing a headhunting company to look for candidates.
Bill Winters is sending signals about capital raising
“We need to reinforce our foundations; streamline our business; strengthen our financial position; and reorient the bank for better returns on our capital,” Mr Winters said in a letter to staff this month.
Those close to the new CEO are convinced he will seek to raise fresh capital to bolster the balance sheet and cover the cost of a restructuring plan to reduce overheads.
Promising to “organise ourselves to simplify the way we work together, make decisions and be more efficient” Mr Winters added that “our capital strength is a key priority”.
Sending a clear signal that he is considering raising capital to strengthen its finances, he said: “Capital strength is a competitive advantage, especially in tough economic times. We are reviewing all aspects of our capital strength as part of our broader business review.”
In the four months since he was appointed to the role, the bank’s share price is up 10 per cent, though it has continued to underperform other UK banks.
Uncertainty about the macroeconomic outlook, ahead of an interest rate rise by the US Federal Reserve is one of the big drags, given the likely impact on emerging markets. Though a capital raising would be dilutive, such a move is widely expected and is partly factored into the current share price.
Naguib Kheraj to join our Board of Governors
Posted October 24th, 2018 by Wellcome Trust
/ Published: 24 October 2018
Finance industry leader Naguib Kheraj will join the Wellcome Board of Governors in January 2019.
Naguib Kheraj: "I look forward to broader engagement with the wonderful work that the Trust does."
Naguib Kheraj is Deputy Chairman of Standard Chartered PLC – a major international bank – and Chairman of Rothesay Life, a specialist UK insurer. He is also a current member of Wellcome's Investment Committee, which is responsible for reviewing and advising on Wellcome's investment portfolio and strategy.
Throughout his career, Naguib has gained a wealth of expertise in banking and finance. He has held many senior positions including Group Finance Director and Vice-Chairman of Barclays, CE0 of JP Morgan Cazenove and Chief Financial Officer of Salomon Brothers Europe.
Naguib has a long track record in the health and education sectors, and currently spends a substantial amount of time as a senior adviser to the Aga Khan Development Network.
He is also a member of the Finance Committee of Oxford University Press and has previously served on the boards of the UK-US Fulbright Commission and NHS England. Naguib has also been a senior adviser to Her Majesty’s Revenue and Customs, and the UK's Financial Services Authority.
Chair of Wellcome Eliza Manningham-Buller said: "I am delighted that Naguib has agreed to become a Governor of the Wellcome Trust. He has made a valuable contribution to Wellcome in his current role, and we will benefit greatly from his financial and investment expertise in steering our future as an organisation. I look forward to working with him to support Wellcome’s vision of improving global health."
Naguib Kheraj added: "It has been a privilege to be involved with the Wellcome Trust on the investment committee for many years. I look forward to broader engagement with the wonderful work that the Trust does."
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