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LONDON (Alliance News) - Standard Chartered PLC's two largest shareholders Thursday welcomed a plan for the departures of Chairman John Peace and Chief Executive Peter Sands, with the latter to be replaced by former JPMorgan Chase & Co executive Bill Winters.

After guiding the bank through the financial crisis of 2007-09 relatively unscathed and with his reputation enhanced, Sands is to make a long anticipated exit as chief executive of Standard Chartered this summer as pressure has been mounting for new leadership to undertake a strategic change of direction in order to return the bank to a position of growth after a decade of profit increases came to an end in 2013.

In a statement Thursday, London-listed Standard Chartered said that Winters is to join the group at the beginning of May, before taking up the role of chief executive in June when Sands will step down. Peace will depart over the course of 2016 so as to allow for continuity while Winters gets to grips with the role.

Speaking to reporters in a conference call, Peace declined to comment on Standard Chartered's plans ahead of the annual results statement for 2014 scheduled for next week.

Temasek, which is Singapore's investment company and the owner of a 17.7% stake in Standard Chartered, welcomed the "orderly" changes being made at board level by the bank.

"This on-going process for board renewal must continue as the requirements and challenges facing the banking and financial sector across the world have become much more complex and onerous," Temasek said.

Martin Gilbert, the chief executive of Aberdeen Asset Management PLC, a shareholder with an 8% stake in the bank, highlighted the strengths of both Standard Chartered and its incoming chief executive.

"Bill Winters is an inspired choice and his experience with JP Morgan will be invaluable in building on Standard Chartered's strong foundations. At its core it is a very good bank with a presence in some of the fastest growing parts of the world," Gilbert said in a statement.

The move to replace Sands and set out an exit for Peace is taking place along with a broader shake-up that will reduce the size of the board to 14 directors from 19 at present.

Jaspal Bindra, group executive director, is stepping down from the board at the end of April after 16 years with the group, while independent directors Ruth Markland and Paul Skinner also will leave by the end of this year. Independent director Oliver Stocken will step down at the end of February.

Standard Chartered has appointed two new non-executive directors: Gay Evans, a former Barclays Capital banker, and Jasmine Whitbread, a non-executive of BT Group PLC and the chief executive of Save the Children International.

Standard Chartered shares were up 2.2% at 946.90 pence midday Thursday.

By Samuel Agini; samagini@alliancenews.com; @samuelagini

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