Standard chief may pocket £3m

RANA TALWAR today resigned as chief executive of Standard Chartered and is expected to receive compensation of up to £3m. Talwar, at the bank's helm for three years, said: 'I recognise that now is an appropriate time to move on. After working for 33 years in the industry, I look forward to taking a break before considering other opportunities. I wish the group well.'

He has been replaced by Standard's Hong Kong director, Mervyn Davies, 49.

Talwar's resignation follows growing suggestions in recent weeks of tension between him and chairman Sir Patrick Gillam. There have been claims that Gillam was wedded to Standard remaining independent while Talwar was more open to a merger or takeover.

Davies said: 'Let me stress we are absolutely committed to independence. Rana did a fine job and we intend to maintain our strategy.'

Gillam also shrugged off suggestions that the bank is under siege from potential acquirers or dissatisfied shareholders. 'I can honestly say that in all the time I have been here, we have never had an offer that has had a number on it,' he said.

He also referred to conversations with investors, including Chinese businessman Tan Sri Khoo, who holds 15%. 'I spoke to our largest shareholder Tan Sri Khoo last night and he remains very supportive of our strategy and the bank,' he said. 'I have never had any investor say to me that we've got to sell the bank. If they have problems with our performance they should tell us,' he added.

Gillam also confirmed that he will leave after the annual meeting in 2003. Six Continents chief executive Sir Ian Prosser remains favourite to succeed him.

Talwar received £1.4m in salary, bonus and benefits last year. He was paid an expatriate allowance of £316,000 and was on a two-year contract.

Standard shares rose 21p to 846p on news of his departure as the City chose not to believe the board's line and took the view that a takeover is now more likely.

'This is a company that has failed to deliver. Frankly it ought to go,' said John Aitken of Kelton International. Barclays and Lloyds TSB, both tipped as buyers, distanced themselves from such speculation.

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