Standard Chartered has denied media speculations over succession planning for its CEO Peter Sands and chairman Sir John Peace amid pressure from investors over declining profit.
The Financial Times reported that chairman of Standard Chartered John Peace have been urged to conduct a search both internally and externally over the next 12 months.
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The bank said that its board was united in support of Peter Sands and John Peace.
Institutional shareholders said there was a widespread feeling that the leadership team needed refreshing after two profit warnings in seven months and pointed to Sands as their preferred scalp, reported The Times.
The FT publication said that Temasek, the Singapore-based bank with an 18% holding in Singapore, has been urging a clearer succession plan.
Standard Chartered said that no succession planning was taking place as a result of recent investor pressure.
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By GlobalDataThe news comes after Standard Chartered warned in June that its operating profit for the first half of the year would be down by 20% from the first half of 2013.
The bank said: "Robust and considered succession plans are in place for all of the senior leaders. We take our board succession extremely seriously and discuss this topic with our shareholders on a regular basis. We will ensure orderly succession takes place at the appropriate times, and only in a responsible manner consistent with full market transparency."
Sir John said: "I have not begun work on a succession plan to replace Peter Sands as CEO."
"The board wants to be absolutely clear that it is united in its support of both Peter Sands and Sir John Peace, and the management team, in delivering the refreshed strategy, restoring the bank to profitable growth and delivering returns for our shareholders," the bank added.
