HSBC on Thursday announced it has appointed a new CEO to take over from Stuart Gulliver, who steered the bank through major regulatory lapses.

John Flint, head of retail banking and wealth management, will succeed Gulliver from 21 February 2017, the global institution said in a statement on Thursday.

Flint’s remuneration in the new role will consist of a base salary of £1,200,000 per annum, a fixed pay allowance of £1,700,000 per annum and a pension allowance of £360,000 per annum equal to 30% of his base salary, the bank said.

Chairman Mark Tucker, who led the search to identify Stuart’s successor, said Gulliver had “led HSBC through a challenging and difficult period with great energy and commitment and successfully reshaped the business strategy of the bank.”

“I would like to thank him on behalf of the Board for everything he has done for HSBC. This includes the important work of putting in place global standards for identifying and preventing financial crime.”

Gulliver was chief in 2016 when HSBC was reported as one of the banks named in the Panama Papers scandal.

In 2015 he appeared before British parliamentarians to explain his position and the banks role in ‘Swissleaks,’ a scandal which revealed how HSBC’s Switzerland Unit was complicit in aiding clients to avoid tax and shift bricks of cash out of the country some years ago.

Earlier, in 2012, he apologised for the bank’s conduct when it was hit with a $1.9m fine by US authorities in settlement over money laundering issues.

Last month the US central bank fined it $175m for its ‘unsafe and unsound’ practices in its foreign exchange trading business.

On its part, the bank has said it has made reforms, including investing in its anti-money laundering systems and clawing back bonuses for senior executives.

“After the most extensive restructuring of the bank in its history and a relentless focus on meeting the evolving expectations of society I am confident HSBC is in better shape than it was seven years ago,” Gulliver said on Thursday.

By Irene Madongo