BusinessCompany NewsHSBC risks investor anger over £120m executive pay

HSBC risks investor anger over £120m executive pay

HSBC is risking anger from its investors over a £120m pay-scheme to five directors

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

Read
The Times story

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