HSBC: Thornton to step down, Geoghegan to pocket £36m

HSBC non-executive director John Thornton is to step down from the board within six months, after being overlooked for the position of chairman last week.

Last week the bank confirmed Douglas Flint would replace Stephen Green the outgoing chairman and that Stuart Gulliver would replace Michael Geoghegan as chief executive. Geoghehan will take home a 'golden goodbye' of £36 million when he leaves in March next year, it is reported.

This includes £1.42 million compensation for leaving early, at least £1.37 million of salary and benefits for 2010 and a maximum bonus of up to £4 million, according to The Telegraph.

The departure of Thornton could hinder HSBC’s ambitious plans for growth in China. A former Goldman Sachs executive, Thornton gave up his seat on the board of Chinese bank ICBC to join HSBC, on the understanding he would be the top candidate for the position as chairman, according to the Financial Times.

One friend of Thornton told the newspaper: ‘He won’t behave irresponsibly but he doesn’t plan to stand for re-election.’

A top 20 investor also told the FT: ‘Not going with Thornton is a mistake.’