HSBC, Britain's largest bank, could be risking its investors’ anger over its proposed executive remuneration to five directors to share £120m over the next three years in a pay scheme which will be discussed at this week’s shareholder meeting.

The Association of British Insurers has issued an “amber” rating to HSBC investors, indicating there is concern over its pay report, while Pirc, the corporate governance adviser, is advocating a vote against the bank's scheme, calling it “excessive”, The Times reports.

Under the new scheme, Mike Geoghegan, HSBC's chief executive, the highest-paid director with a £1m salary, could receive a bonus of up to four times his salary and a long-term incentive plan which could be equivalent to seven times his salary – a potential pay package of £12m a year.

It is understood the directors will have to meet tough profit performance targets and significantly beat City forecasts to receive the bonus.

Further reading:

Shareholders call for directors' heads over sub-prime market decisions

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