HSBC chief financial officer Pam Kaur will step down from her role at the London-based banking giant by its annual general meeting next spring.
Kaur, who was appointed as the bank's first female finance chief in January 2025, announced her departure just two years into her tenure in a move that took the City of London financial community by surprise.
Commenting on her decision to step down, Kaur said that it was "the right time… to embrace new leadership opportunities and apply my experience in a different context."
Her exit marks the latest executive leadership change under chief executive Georges Elhedery, who took the helm at HSBC two years ago. HSBC Holdings plc is one of the world's largest banking and financial services organisations, headquartered in Britain but generating the majority of its income across Asian markets.
Under Elhedery's direction, the lender has engaged in a wide-ranging corporate overhaul. The bank split its global operations into East and West divisions, cut operational costs, sold off selected international units, and closed key parts of its investment banking business in the United Kingdom.
Milestone tenure and structural overhaul
Kaur's appointment represented a significant milestone in HSBC's 160-year history, making her the first woman to serve as chief financial officer since the institution was founded. As CFO, she held overall responsibility for managing the financial strategy, capital allocation, and balance sheet of one of Europe's largest lenders.
During her tenure as finance chief, HSBC's stock market performance experienced strong growth, with the share price roughly doubled under her financial stewardship.
Edward Firth, an equity analyst at investment bank KBW in London, noted that Kaur's planned departure came as a surprise to market observers. Firth said that "Kaur’s exit is a bit of a surprise, but she has done a good job in supporting Elhedery’s restructuring and selling off superfluous parts of the bank, the results of which can be seen in the share price."
Despite her contribution to the bank's rising share price, market reaction to the announcement of her upcoming departure was cautious, with shares in HSBC falling by 1.3 per cent during trading.
Board governance and leadership changes
Kaur's decision to step down follows the permanent appointment of interim chairman Brendan Nelson. Nelson was confirmed in the permanent chairmanship following a drawn-out, seven-month search for a replacement for his predecessor, Mark Tucker.
Addressing potential speculation regarding board dynamics, a source close to the bank said it was "not the case at all" that Kaur's departure was connected with the appointment of Nelson.
Her planned exit adds to a broader sequence of high-profile departures from HSBC's senior executive team in recent months. Other prominent figures to leave the bank recently include insurance chief Edward Moncreiffe and Gerry Keefe, who previously served as head of banking for Europe and the Americas.
Advisory role, remuneration and succession search
HSBC confirmed that it has officially initiated a search process to identify Kaur's successor as chief financial officer, evaluating both internal candidates within the bank and external candidates from the wider financial sector.
Following her formal departure from the finance chief role, Kaur will take on an advisory role to assist Elhedery with "strategic projects" and to ensure an orderly leadership transition across the group.
Kaur was paid £3.9million in 2025. Under the terms of her departure, she will continue to receive her fixed salary and contractual benefits until her one-year notice period ends. She will also remain eligible to receive a performance bonus covering the period up to her formal departure from the board of directors.
Her final exit as chief financial officer will take effect by the bank's next annual general meeting in the spring. The annual gathering provides shareholders with their yearly forum to vote on board appointments, financial accounts, and executive compensation.
