HSBC 'tightens' bonuses
HSBC today published details of its "tighter" new bonus scheme for top executives that could still see new chief executive Stuart Gulliver collect an annual package of up to £12.5 million.
That is £2.5 million less than he could have received under the old scheme. The scheme cuts the amount directors and top executives can receive from seven times their base salary to six times.
It also sees share-based payouts stretched from three years to five, and requires directors to hold on to those shares until they retire or leave the bank. The changes, which will be put to shareholders at next month's annual meeting, are seen as an attempt to respond in a small way to political and public outrage voiced over bankers' pay.
The normally critical Guy Jubb of Standard Life said: "Standard Life Investments welcomes the innovative approach to directors' remuneration announced today by HSBC. It demonstrates that HSBC has taken to heart the lessons from the banking crisis and provides a platform to reward and incentivise prudential and profitable growth.
"The long-term focus of the proposals deserve support from long-term investors."
