Why did HSBC CEO John Flint lose his job?
Strategy, performance, personality clashes…who knows?
Maybe it’s because he liked to read books.
Last week HSBC announced that CEO John Flint was leaving the bank. He had enjoyed 30+ years with the bank, but only served as the CEO for 18 months.
His departure came as a shock.
Reporting from the BBC noted that the bank gave no reason, but it mentioned the Huawei connection that may have played a part. Forbes reported that Flint clashed with his boss, Chairman Mark Tucker. The Guardian reported the speculation of both of these possibilities, but included a quote from Tucker denying a personality clash, or any pressure from China.
Then The Times threw out another theory:
“HSBC’s touchy-feely boss John Flint gets the boot” read the heading.
“Did his ambition to change the culture at Europe’s biggest bank cost him the job?” asked the sub-head.
John Flint was a CEO who talked about people and culture. He also spoke of humility, serving customers, and vulnerability. He talked about mental health. And yes, he talked about creating the ‘healthiest human system’.
But is that why he was axed?
The article seems to make this implication, but the mention of the ‘people agenda’ in the third paragraph notes that Flint made a business case for creating an environment ‘where everybody can be themselves’. He talked about the ‘commercial outcome’ to this – where HSBC would be able ‘to learn and adapt quicker’.
How is that touchy-feely?
It then goes on to cite that HSBC ‘suffered a difficult fourth quarter’ where the bank ‘missed a wide range of targets, including revenues and profits.’ It noted that the ‘share price was down 13 percent’ under Flint, and that HSBC ‘generates 90% of its profits in Asia’ and was ‘hit by choppy Asian markets’. It mentioned ‘volatile conditions’, including the surprise cut in the US interest rate, the trade war between America and China, and the unrest in Hong Kong.
These are reasons why performance could be impacted. They have nothing to do with Flint’s ambition ‘to create the right environment for everyone’.
The story quotes a ‘former insider’ whose explanation for Flint’s exit was this:
‘John’s quite a closed individual. Maybe he failed to keep closely in touch with the board.’
No one is quoted (on the record or anonymously) making any comment about Flint being ‘touchy-feely’ or alleging anything about culture impacting his performance – or tenure.
Why I care – and why you should, too
Last year I saw John Flint address a group of graduates joining HSBC. The culture change that is attributed to him is in line with what the research says Gen Z wants. And they saw someone who seemed to care – and now this article seems to imply that this is ‘probably’ one of the reasons he lost his job.
And it’s not backed up by evidence.
Is there speculation? I don’t know. But this story leads with an argument that it doesn’t support with facts. And that’s not reputable journalism.
“Never let the truth get in the way of a good story.” - Mark Twain
I expect the reasons for Flint’s exit are numerous and complicated – but it’s a dangerous assumption to make that he lost his job because he cared about people and culture.
The story ends by sharing a list of books Flint had shared with senior leaders (not so strange considering CEOs like Jeff Bezos, Warren Buffett and Tim Cook are known to do the same). It then recounts a story Flint shared with recruits – about a phone call he received from the deputy chairman after a particularly difficult year.
He had called to say thank you. And it made an impression on Flint.
A CEO who appreciates reading and recognition?
How touchy-feely.
Are you a leader who wants to improve the way you present, write or connect with others? Do you want to help your team become more creative, collaborative and innovative? I love helping people improve their communication and creativity so they can be more articulate, innovative, and successful.
Investing in improving these skills doesn't make you touchy-feely, it makes you smart - and effective. Contact me at beth@listenengage.com to find out how I can help you.