- Push-out Score determined
- After around 10 years in the position
- Accolades and praise for Horta-Osório
- Search for a successor
- Horta-Osório spoke at length and said 134 words
(exechange) — London, United Kingdom, July 6, 2020 — António Horta-Osório, chief executive of Lloyds, prepares for his departure. As announced by Lloyds Banking Group Plc in a news release on Monday, July 6, 2020, António Horta-Osório is preparing to leave his post as chief executive officer at the bank after around 10 years in the role, effective by June 2021.
António Horta-Osório has agreed to time his stepping down as Group CEO to support a smooth transition, with a target date at the end of June next year, at which point he will retire from Lloyds.
“Until then he will continue to be completely focused with the executive team on delivering the remainder of the current strategic plan (GSR3), as well as the plans put in place to address the Covid 19 pandemic effects and support our customers during these difficult times,” Lloyds stated.
Lloyds will undertake a search for a successor.
It is a long goodbye. The announcement of António Horta-Osório’s move comes up to 12 months prior to his planned departure from the post of CEO.
In general, a top executive who announces the departure particularly early may be considered a lame duck.
Lengthy lead times give boards extra time to find replacements, and they also create uncertainty. Would-be successors may jockey for attention and workers may wonder who is actually in charge.
Generally speaking, lame-duck leaders can take a forceful role in selecting a successor and are not expected to launch major shifts.
Lloyds did not give an explicit reason for António Horta-Osório’s departure from the CEO post. Lloyds said: “This planned leadership succession will allow a new Chief Executive to work with the new Chair in the next stage of the Group’s development and transformation.”
Precise information regarding António Horta-Osório’s future plans was not immediately available.
Lloyds stated: “Following the announcement last year that Lord Blackwell intended to retire as Chairman of Lloyds Banking Group over the coming year, the Group is pleased to announce that Robin Budenberg CBE has been selected as his successor. Robin will join the Group Board on October 1st 2020 and take over as Chair in early 2021 when Lord Blackwell steps down from the Board.”
Lloyds said: “With the Chair succession now in place, António Horta-Osório has also informed the Board of his intention to step down as Chief Executive in 2021 after having delivered three strategic plans and completed 10 years in the role next year.”
Share price decline
The announcement follows a decline in Lloyds Banking Group Plc’s share price of 63% since July 2015.
In the position of CEO since 2011
António Horta-Osório became CEO of the Company in 2011.
His bio reads as follows:
Joined the Board in January 2011
Appointed Group Chief Executive in March 2011
Skills and experience: António Horta-Osório brings extensive experience in, and understanding of, both retail and commercial banking. This has been built over a period of more than 25 years, working both internationally as well as in the UK.
António Horta-Osório has a Degree in Management & Business Administration from the Universidade Católica Portuguesa, an MBA from INSEAD and has completed the Advanced Management Program at Harvard Business School.
External appointments: António Horta-Osório is a Non-Executive Director of EXOR N.V., Fundação Champalimaud and Sociedade Francisco Manuel dos Santos in Portugal, a member of the Board of Stichting INPAR Management/Enable and Chairman of the Wallace Collection.
Former appointments: António Horta-Osório joined Grupo Santander in 1993, having previously worked for Goldman Sachs and for Citibank, and held various senior management positions culminating in becoming Executive Vice President of Grupo Santander and a member of its Management Committee. In November 2004, he was appointed as a Non-Executive Director of Santander UK and, from August 2006 until November 2010, served as its Chief Executive. António Horta-Osório is also a former Non-Executive Director of the Court of the Bank of England and Governor of the London Business School.
Push-out Score determined
The Push-out Score™ determined by exechange gauges the pressure surrounding the management change on a scale of 0 to 10.
exechange reached out to Lloyds and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 28.2020 ($).