* HSBC investment bank boss Stuart Gulliver set to be CEO
* Gulliver groomed for job, gets it sooner than expected
* Elevation follows turmoil over chairman succession
* 30-year HSBC veteran seen good choice alongside Flint
By Steve Slater
LONDON, Sept 24 (Reuters) - After 30 years at HSBC, Stuart Gulliver could be forgiven for expecting a smoother elevation to chief executive of the world's third-biggest bank.
Gulliver, a keen sailor who grew up in Plymouth on England's south coast, is having to come through some rough water to take the helm after a fortnight of uncharacteristic turmoil that will see the bank's top three roles change.
Gulliver will replace Michael Geoghegan as chief executive, and finance director Douglas Flint will take over as chairman, a person familiar with the matter said on Thursday.
The bank has not confirmed the appointments, which would need regulatory approval.
Gulliver, 51, has been groomed for the CEO post since earlier this year, so his elevation is no great shock, but his promotion has come earlier than either he or the bank expected after a hunt for a new chairman sparked a bigger shake-up.
"His succession is not a surprise, albeit the manner and timing are," said Ian Gordon, analyst at Exane BNP Paribas.
The initial reaction among investors and analysts to an experienced top team of Flint and Gulliver was positive, despite shock across the City at the boardroom upheaval.
Clear and articulate on complex issues, bankers said Gulliver was well respected by clients. One said he had continued to retain and cultivate relationships in Asia, even after returning to London eight years ago -- key given HSBC's increasing focus back on Hong Kong and China.
While Flint may need to heal boardroom rifts, Gulliver's task will be to keep on track attempts to take advantage of its strong capital position and emerging markets focus.
GULLIVER'S TRAVELS
The appointment of an investment banker as CEO will rankle with UK politicians, who slammed the promotion of investment bank boss Bob Diamond to CEO of Barclays earlier this month and the rewards for what they dubbed "casino banking".
They are likely to pounce on Gulliver's 9.8 million pound ($15 million) pay packet last year.
HSBC's investment banking is less risky than at most rivals, however.
When Gulliver took sole charge of the business in May 2006 he scaled back ambitions and refocused on HSBC's strengths -- debt financing, led by emerging markets. The business was renamed Global Banking and Markets (GBM).
That followed an ill-fated three years attempting to build a bulge-bracket investment bank when Gulliver was co-head of investment banking alongside former Morgan Stanley banker John Studzinski. The two were not believed to have got on.
The culture of "star" bankers always sat uncomfortably at HSBC, and Studzinki left.
In the first six months of this year GBM made a $5.6 billion profit, down marginally from the record first half of 2009 but accounting for half of group profits.
Gulliver was this year given responsibility for all European and Middle East operations, in the clearest signal he would be the next CEO.
"He knows the bank inside out. He's worked in Asia and Europe. He's well rounded, and his business is the one that's got bigger and bigger as it's taken advantage of the opportunities and trade flows," said Chris Wheeler, analyst at Mediobanca.
Like many HSBC lifers, Gulliver, who joined HSBC in 1980 after graduating from Oxford University with a masters degree in jurisprudence, has travelled the world with the bank, holding senior roles in London, Hong Kong, Tokyo, Kuala Lumpur and United Arab Emirates.
His potential replacements to run GBM include his two key lieutenants, Samir Assaf and Robin Phillips. (Additional reporting by Michael Flaherty in Hong Kong; Editing by Will Waterman) ($1=.6381 Pound)