Monday, June 15, 2009

What lies beneath

A companion piece to the Dancing with the Stars blog below about Bernie....

Thanks to an additional piece of info from a WealthBriefing article, we get some insight into high level politics and hiring at HSBC Private Bank and in general.

My original source of Bernie's promotion came from Reuters.....a few lines, nothing very telling. But WealthBriefing had an additional nugget:

Bernie, the "new global head of Private Wealth Solutions........formerly been led by Declan Sheehan since 2006. Mr Sheehan is moving to concentrate exclusively on his regional role as chief executive of HSBC Private Bank in the UK & Channel Islands"

Declan was (I believe, originally a bond guy who made it big) in Asia with private banking at JP Morgan in Hong Kong until he was replaced by Debra T, the "Terminator". Some say he burned out and quit, some say he was ousted. This was JP-Chase merger time afterall.

So Declan moves to HBSC where he not only oversees UK & Channel Islands but also the Private Wealth Solutions Group (the global trust business). Now you take the trust business away from his portfolio. There are only 2 reasons top execs give up a piece of the pie: either is when it is taken away from you or it is a losing proposition that is cancerous to your CV and you unload to some unsuspecting schmuck.

Sure there could be something brewing in the UK that required his undivided attention but reality is that he would have channelled his people and resources accordingly to ensure he could do both. You delegate. You do not discard.

Anyone who gives up a business line/division for "the better good of the organisation" or to step aside for some highflyer is simply committing career suicide as it erodes your power base and bargaining power. From where I sit, Declan won't ever rise beyond his current position at HSBC, if indeed he is able to retain it for much longer.

So, because of Declan's undoing, Bernie gets to fill the vaccuum.

Whether Bernie is deserving or not, is a matter for another day....afterall, there are only 2 reasons why very senior people get promoted.

No comments: