HSBC Holdings plc board appointment

31 January 2008

Vincent Cheng Hoi Chuen (59) has been appointed an executive Director of HSBC Holdings plc with effect from 1 February 2008. 

Mr Cheng, MPhil, BSocSc, joined the HSBC Group in 1978 and was appointed a Group Managing Director in 2005. He is Chairman of The Hongkong and Shanghai Banking Corporation Limited, having been appointed a Director in 1995.  He is Chairman of HSBC Bank (China) Company Limited and HSBC Investments (Hong Kong) Limited and a Director of HSBC Bank Australia Limited. 

Mr Cheng is a Director of Great Eagle Holdings Limited and a Member of the Exchange Fund Advisory Committee of the Hong Kong Monetary Authority. He was Deputy Chairman and Chief Executive Officer of Hang Seng Bank Limited from 1998 to 2005. He was a Director of Swire Pacific Limited from 2005 to 31 January 2008 and a Member of the Hong Kong Government's highest policy-making body, the Executive Council, from 1995 to 1997.

Stephen Green, HSBC Group Chairman, said: "I am delighted to welcome Vincent to the HSBC Board where his expertise and deep knowledge of Asia will be an invaluable asset. As Chairman for our Asia operations, overseeing over 19 countries and territories in the region, he has cemented HSBC's position as the number one international bank in Asia.  It is rare to find someone who brings 30 years business experience, particularly in mainland China and Hong Kong, and is also an expert public policy adviser and economist.

"Asia remains the heartbeat of HSBC and the linchpin of our emerging markets strategy.  It is therefore entirely fitting that the region should be directly represented at the highest level of HSBC, on the main Board."

Mr Cheng's appointment shall be subject to re-election by shareholders at the 2008 Annual General Meeting. Under his service contract, Mr Cheng receives a basic annual salary of HK$7,500,000 and is eligible for a discretionary annual cash bonus and long-term incentive award. Remuneration policy for executive Directors is intended to provide competitive rates of base salary but with the potential for the majority of the value of the remuneration package to be delivered in the form of both short and long-term incentives. Cash bonuses for executive Directors are based primarily upon performance measured against a number of key financial and non-financial targets for the Group. The vesting of Performance Shares awarded under the long-term incentive plan is based on two independent measures, relative Total Shareholder Return and earnings per share. The performance conditions for Performance Share awards are measured over a three-year performance period and awards forfeited to the extent that the performance conditions have not been met.

Mr Cheng has been a member of the Group Management Board of HSBC Holdings plc since 2005. The Group Management Board is chaired by M F Geoghegan, the Group Chief Executive of HSBC Holdings plc, and D J Flint, the Group Finance Director of HSBC Holdings plc, is a member. Baroness Dunn, W K L Fung, M F Geoghegan, S K Green and J W J Hughes-Hallett are Directors of HSBC Holdings plc who are, or previously served as, Directors of The Hongkong and Shanghai Banking Corporation Limited, of which Mr Cheng is Chairman. A A Flockhart and S T Gulliver, Group Managing Directors of HSBC Holdings plc, are also Directors of The Hongkong and Shanghai Banking Corporation Limited. Baroness Dunn and J W J Hughes-Hallett are Directors of Swire Pacific Limited, of which Mr Cheng was also a Director from 2005 to 31 January 2008.

There are no substantial or controlling shareholders of HSBC Holdings plc.

Mr Cheng has a beneficial interest in 241,469 ordinary shares of HSBC Holdings plc and holds a further interest in 408,022 conditional long-term incentive awards of Performance Shares under the Restricted Share Plan and The HSBC Share Plan. He also has an interest in 3,070 share options under the HSBC Holdings Savings-Related Share Option Plan: International.

Save as disclosed above there is no other information required to be disclosed pursuant to Rule 13.51(2) of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.

There are no matters relating to the appointment of Mr Cheng that need to be disclosed pursuant to Listing Rule 9.6.13(2) to (6) of the Listing Rules of the Financial Services Authority.

Biographical details about Mr Cheng are stated below.

The Board of Directors of HSBC Holdings plc as at the date of this announcement are:

S K Green, Baroness Dunn*, Sir Brian Moffat*, M F Geoghegan, Lord Butler*, J D Coombe†, J L Durán†, R A Fairhead†, D J Flint, W K L Fung*, J W J Hughes-Hallett†, W S H Laidlaw†, Sir Mark Moody-Stuart†, G Morgan†, S W Newton†, S M Robertson† and Sir Brian Williamson†.

* Non-executive Director
† Independent non-executive Director

For and on behalf of
HSBC Holdings plc
R G Barber
Group Company Secretary
31 January 2008

Media enquiries to Richard Lindsay on +44(0)20 7992 1555 or richardlindsay@hsbc.com

HSBC Holdings plc
HSBC Holdings plc serves over 125 million customers worldwide through around 10,000 offices in 83 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of some US$2,150 billion at 30 June 2007, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.