Reformation in the management structure of Standard Chartered
The new chief executive of Standard Chartered and the previous chief of JP Morgan Chase’s division of investment banking, Mr. William T. Winters has revealed his new team of management on Monday.
He announced modifications to simplify the company’s reporting structure. Standard Chartered is looking to reduce its costs and advance its profitability and has aimed at $1.8 billion in yearly savings of the costs by 2017.
The group needs to initiate delivering performance, as stated by Mr. Winters, reduce its cost base and bureaucracy, expand answerability and speed up decision making. It seems that he is taking long strides to enforce these change backed by reasons.
The Bank has stated that it would rationalize its lines of the business to three which would be commercial and private banking, retail banking and corporate and investment banking. It has been decided that the management team will report directly to Mr. Winters.
Mr. Winters said that the new arrangement would help to achieve all of the critical goals and would be in place as they link a complete plan to address the teams’ performance by the year end.
In an effort to turn around its business, the bank replaced Peter Sands with Mr. Winters as the chief executive in June, and John W. Peace, the Standard Chartered chairman, is likely to leave in the coming year. As the bank plans to change its board to 14, three veteran directors will also step down this year.
It has been seen that Standard Chartered makes majority of its incomes in Asia and has been badly hit in recent past by losses for loans which have become bad.
It has been reported that the Standard Chartered is likely to setup and advance its business around various other areas of the world like greater China, some parts of Asia, Middle East and Africa.