Departing HSBC chief executive may net £23m

Mr Geoghegan's departure in March next year was formally announced late on Friday after a week of media leaks and speculation over boardroom bust-ups.

It was reported that Mr Geoghegan threatened to resign unless he was promoted to chairman, after Stephen Green's decision to leave the bank for a position in the coalition Government as Trade Minister.

But the bank confirmed the position was going to Douglas Flint, who joined HSBC in 1995, while Stuart Gulliver, head of the group's investment banking operation, would take the chief executive role when Mr Geoghegan leaves in late December.

Mr Geoghegan, who will remain in an advisory capacity until March, stands to receive up to 23m after leaving the company, according to the Sunday Times newspaper.

He will receive 1.4m because he is leaving early and will be eligible for a 4.2m bonus for 2010. In addition, he owns 6.2m worth of shares, and long-term incentives could deliver another 11m, the paper said.

A spokesman for HSBC said the 1.4m was the only payout for leaving the company, and to call any further remuneration a "farewell package" would be inaccurate.

Speaking on Friday, Mr Geoghegan said all discussions had been "calm" and speculation over a boardroom bust-up was all "nonsense".

Mr Geoghegan said it was Mr Green's decision to leave that "triggered" his own thinking.

Mr Flint, who will leave the BP board as a result of his appointment, will receive an annual salary of 1.5m and an allowance equal to half of his salary to fund personal pension arrangements.

Outgoing chairman, Mr Green said the leaks to the media were

"wrong", "hurtful" and "unnecessary" and hinted at a possible investigation into the source of the leaks.

The succession saga comes amid a flurry of changes at the top of Britain's major banks.

Lloyds Banking Group announced last Monday that chief executive Eric Daniels planned to retire in a year's time, while Barclays recently revealed that John Varley is stepping down to be replaced by its investment banking boss Bob Diamond.