StanChart prepares board shake-up
STANDARD CHARTERED is preparing a boardroom shake-up amid pressure from investors over its handling of allegations that it hid details of transactions with Iran totalling $250 billion.
The overhaul, expected in the next few months, is intended to strengthen the bank’s circle of non-executive directors, more than half of whom were appointed several years before the start of the financial crisis.
A number of leading shareholders have accused StanChart of a lack of oversight after it was caught off guard by claims from New York state’s Department of Financial Services that it falsified records of dealings with Iran. Peter Sands, chief executive, and Richard Meddings, finance director, have been criticised by investors for failing to spot risks in the bank’s dealings with Iran. Their positions, however, are not thought to be under threat.
The bank paid $340 million to the New York regulator this week after investors made clear they wanted a quick settlement.
Criticism has been directed at Sir John Peace, StanChart’s chairman. One top 20 investor said he feared Sir John had “taken his eye off the ball” because of commitments elsewhere. – (Copyright The Financial Times Limited 2012)