HSBC directors put on brave face at their Shanghai board meeting

HSBC was attempting to gloss over the bitter infighting that has wracked its board in recent days as directors met in Shanghai yesterday. The meeting had originally been scheduled with the aim of selecting a new chairman to replace Stephen Green, who is departing early to take an unpaid role as David Cameron's Trade Minister from the House of Lords.

However, amid a series of uncharacteristic and vicious leaks, the decision was brought forward to last Friday when finance director Douglas Flint was appointed as the new head of the board with investment banking chief Stuart Gulliver named chief executive. Michael Geoghegan, the combative incumbent chief executive, is stepping down less than a year after moving his office with great fanfare to Hong Kong.

Yesterday directors put on a show of unity at the meeting, held in what is a key market for the company, which is keen to make further inroads and demonstrate its commitment to the fast-growing region.

Mr Geoghegan has said he will seek a role outside of banking following his departure. He is the first chief executive of HSBC not to be subsequently promoted to chairman in more than 30 years. The succession to Mr Green was thrown into chaos after reports – furiously denied by the bank and Mr Geoghegan – that he had threatened to quit if he was not given the role.

He has subsequently described the new team as "awesome" although his departure will be smoothed by a seven-figure pay-off plus the prospect of a bonus which he will be under no pressure to give up if rivals make the same move. This year he said his payment would go to a charity after every other UK banking chief said they would forego their bonuses.

Stuart Gulliver, who will take on his new role next year and move to Hong Kong, said of the potential for shifting the headquarters there: "We haven't reached a decision on whether to move the headquarters or not. If we ever come to that decision, that's the point at which we will evaluate."

Mr Flint will be based in London, where he will be hoping to be able to improve relations with shareholders, who have watched aghast at events at the once-staid company.