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 Investors had been pushing for a change at the helm of the
Asia-focused bank citing strategic, governance and operational
mistakes, and saying Sands had been slow to address troubles
including a U.S. fine for breaking sanctions to losses on
commodities loans.
Winters, 53, is currently CEO of the Renshaw Bay hedge fund he
founded and is one of the most respected bankers in the industry. He
has wide experience of investment banking and regulatory issues.
The bank's two biggest shareholders, Singapore sovereign fund
Temasek and Aberdeen Asset Management - who own more than 25 percent
between them - welcomed the changes which will also see Chairman
John Peace leave next year.
"From what we know at this point, this is an amazingly astute
choice," said Jim Antos, a Hong-Kong based analyst at Mizuho
Securities Asia Ltd.
Antos said Winters could force "real change" at the bank and has
strong credibility with U.S. and UK regulators, "which is exactly
what the bank needs."
Standard Chartered shares jumped 5 percent on the news of the
appointment before trimming gains amid concerns the bank is now more
likely to launch a rights issue to address concerns about its
capital strength.
By 1244 GMT Standard Chartered shares were up 3 percent at 956
pence. They have fallen 30 percent since the start of 2013.
Analysts said there could be more changes in management, although
Peace said Mike Rees, the deputy CEO and head of the wholesale bank,
was staying in his role.
ALL CHANGE
Winters, who is originally from New York but has dual U.S. and UK
citizenship, will join Standard Chartered's board in May and take
over from Sands the following month. He will be based in London,
where he has lived for the past 22 years.
Winters described Standard Chartered as "a special bank". He will be
paid up to 6.9 million pounds ($10.7 million) a year, including a
base salary of 1.15 million pounds, the same in an "allowance" and
up to 4.6 million in annual bonus.
He will be granted shares to compensate him for any losses when he
leaves Renshaw Bay, the London hedge fund and asset manager he
founded four years ago named after a bay on a lake in New York State
where his grandparents have a cabin. Standard Chartered declined to
say how much the compensation could be.
Winters joined JPMorgan in 1983 as a trainee in New York and moved
up the ranks to become co-CEO of its investment bank from 2004 until
2009, when he left following a falling out with Chief Executive
Jamie Dimon.
Winters then became one of five members of a British government
commission that analysed how banks could be made structurally safer.
The panel's recommendations that firms should separate their
domestic retail banking operations is being implemented.
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Peace said Winters was "a world class banker" who was strongly
respected by regulators and clients.
Investors started calling for change at the top of Standard
Chartered early last year. Three of the bank's top 30 investors told
Reuters in December that Sands should be replaced in 2015.
In addition to a potential rights issue, Winters' early tasks will
be to try to make more cost cuts, potentially by reducing its retail
banking operations across Asia, analysts said.
Former McKinsey consultant Sands, 53, steered Standard Chartered
through the financial crisis, helping it to 10 years of record
earnings. He has been CEO for eight years, making him one of the
longest serving CEOs at a major global bank.
Sands could be paid up to 8 million pounds when he leaves, mostly in
previous share awards that have not yet vested, although the bank's
recent weak performance means the awards are likely to be much less
than the maximum.
"We haven't got everything right and of course we have faced a huge
number of challenges through what has been one of the most
tumultuous and turbulent periods in the history of financial
markets, but I'm proud of what the bank has achieved," Sands told
reporters on a conference call.
"I'm delighted Bill is going to be taking the mantle from me in
June."
Some investors have urged Standard Chartered to make wider changes
in the board, and the bank said Jaspal Bindra, CEO of its Asia
business, will also leave this year after 16 years with the bank.
It said a further three long standing directors will step down -
Ruth Markland, Paul Skinner and Oliver Stocken - and said two new
directors will join the board - Gay Huey Evans and Jasmine
Whitbread.
(Additional reporting by Saeed Azhar in Singapore; Editing by Sinead
Cruise and Anna Willard)
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