Standard Chartered Hands Pick An Ex-JPMorgan Chief As Its Own

Standard Chartered.5 (OTCMKTS:SCBFF) replaced its long serving CEO, Peter Sands amid an overhaul in its top-tier management level as troubles have continued for nearly a couple years. Reports indicated that Mr. Sands will be replaced by an ex-JPMorgan Chase & Co. (NYSE:JPM) co-CEO, Bill Winters.

The move comes at a time when the bank suffered recent blows of critical errors in its operational, strategic, and governance sector under the leadership of Mr. Sands. Investors are reported to have pushed his dismissal believing his response to penalties imposed by the US regularity authorities for disregarding certain sanctions to be lethargic, as well as less than impressive returns on commodities loans.

Mr. Winters will be taking over the reins of the bank in June 2015. Although, he will join the bank in May. He is reported to receive annual remuneration of around $10.7 million with a speculated base salary of nearly $1.7 million. According to reports, he will be reimbursed of any expenses or funds out flows as he abandons his current role as a CEO of Renshaw Bay, a UK-based hedge fund he founded after he departed from New York-based investment bank, JP Morgan.

Issues that require utmost attention by Mr. Winters are reported to be not only of cost reduction but, also to shrink the bank’s operations in Asian territory, as reported by industry experts.

Mr. Winters is regarded as “a world class banker” by Standard Chartered Chairman, John Peace. Mr. Sands holds the same view about Mr. Winters, he says, “I am delighted Bill is going to be taking the mantle from me in June.”

Mr. Sands accepted amid troubling and errors under his supervision. He said in a conference call: “We have not got everything right and of course we have faced a huge number of challenges through what has been one of the most tumultuous and turbulent periods in the history of financial markets, but I'm proud of what the bank has achieved.”

Mr. Sand’s departure is part of a much larger overhaul of Standard Chartered bank as Chairman Peace is also reported to leave along with Jaspal Bindra, who serves as the CEO of the bank’s Asian market. Other senior executives have also reported to step down in the near future.

Mr. Sands severance package is reported to total to around $12 million, comprising of un-exercised stock options. Industry analysts are speculating for the end figure to be lower as the bank has performed poorly.