Confirming speculation, Lloyds Banking Group (LLOY.L, LYG) Monday said its Chairman Sir Winfried Bischoff would be retiring by the shareholders meeting in May 2014. The exact date depends on the appointment of his successor. Bischoff has been the bank's chairman since September 2009.
Anthony Watson, Senior Independent Director, will lead the search for the Chairman's successor, which will commence immediately.
Sir Winfried Bischoff said, "Lloyds Banking Group has, over the past four years, made significant progress in its goal to become a strong, efficient, UK-focused retail and commercial bank. Whilst clearly some challenges remain, the performance of the Group is well on track.
Bischoff joined Lloyds four years back, replacing Sir Victor Blank, who was blamed for the troubled takeover of HBOS during the 2008 banking crisis. The lender had sought 20 billion pounds in bailout, following its takeover of HBOS Plc.
Media reports had indicated on Sunday that Bischoff was set to step down from the position later this year as the British banking major is readying itself for privatization. The announcement was reportedly expected to be made ahead of the group's shareholder meeting on Thursday.
Bischoff has been instrumental in leading an extensive restructuring of the firm and bringing it back to profitability. In late-April, Lloyds Group had reported a profit for the first quarter that soared from last year, reflecting a significant rise in net trading income and lower loan impairment charges.
Bischoff came out of retirement to join Lloyds in September 2009. He had retired in February 2009 from Citigroup, Inc. (C) while serving as its chairman. He joined Citigroup through the its acquisition of Schroders in 2000, when he was appointed Chairman of Citigroup Europe, and later became acting CEO of Citigroup in 2007.
Earlier, Bischoff was the Group Chief Executive and then Chairman of Schroders. He joined Schroders in 1966, and rapidly moved up the ranks to finally become its chairman. He is also a non-executive director of Eli Lilly and Co. (LLY) and McGraw Hill Cos., Inc. (MHP).
Bischoff has substantial experience of leading complex international boards in the UK, Asia and the US. His background spans a range of sectors, including banking and capital markets, finance and government regulation and public policy.
Noting that in many areas the bank is ahead of plan, Bischoff today said this gives him confidence in the future success of the Group and ''it is therefore a good time to start the search for my successor."
LLOY.L is currently down 1.2 percent in early morning trade at 58.23 pence.
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