Bank bows to shareholders' concerns over executive pay
HSBC has bowed to shareholder pressure to block a 36 per cent pay rise for the bank’s chief executive.
The bank had planned to boost chief executive Michael Geoghegan's salary by more than a third to about £1.4 million, but will now cancel the move after shareholders expressed disquiet. Sources form inside the organization also told that HSBC has not taken any taxpayer money and they have been profitable, generated capital, paid dividends and very much remained open for business throughout the crisis. It is understood that Geoghegan will still be entitled to his bonus of up to four times his salary - a maximum of £4.3 million. Other top bankers have also announced reward restraint this week. Lloyds Banking Group chief executive Eric Daniels refused his bonus, worth £2.3 million, while Stephen Hester, chief executive of Royal Bank of Scotland, turned down his bonus reportedly worth up to £1.6 million.