HSBC's Ann Godbehere to retire as chair search ends with Nelson's appointment

Dec 23 (Reuters) - HSBC Holdings said on Tuesday that Ann Godbehere, its senior independent director and board member who led the search for a new chair, would step down and retire at the bank's 2026 annual general meeting due to "personal and lifestyle reasons".

Her departure comes as HSBC has drawn a line under a chair succession that dragged on for more than a year, ending in the surprise confirmation of interim chair Brendan Nelson in early December.

The drawn-out process and the late pivot to an internal candidate had been closely watched and, in some quarters, met with frustration, reviving questions about succession planning at a bank that sells itself on disciplined governance.

After considering high-profile external contenders, including former UK finance minister George Osborne and Goldman Sachs executive Kevin Sneader, HSBC ultimately opted for Nelson - a seasoned board member with experience at BP and NatWest.

Nelson said he respected Godbehere's decision to step down now that the chair search had been completed, according to a company statement.

Her departure comes as London-headquartered HSBC tries to simplify its Asia-heavy franchise by moving to buy out minority investors in Hang Seng Bank for HK$106.1 billion.

(Reporting by Roushni Nair in Bengaluru; Editing by Subhranshu Sahu)