 STUART GULLIVER CHIEF EXECUTIVE |
HSBC is now going to axe 6,000 staff.
After a great revolt by the shareholder at the announcement that the Chief Executive should receive a £14million pay, including bonus and dividends HSBC now bringing a new pay policy in. It is supposed to reduce the pay to Chief executives by seven per cent.
HSBC is Europe's biggest bank, The new pay policy also reduces the pension from 50 per cent to 30 per cent of their salary. Furthermore, the long-term incentives subject to a three year forward-looking performance period.
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The proposal was agreed by 96 per cent of the shareholders giving overwhelming support for chief executive Stuart Gulliver's £7,3million pay package for 2015 which was reduced from £7,61milllion.
Changes had to be made provoked by the anger of investors of Boardroom remuneration. It was also caused at BP and Anglo American. It is nothing but high time that huge sums of money to chief executives are being curbed and should even be more. A pay of £7,3million to any man can surely not be justifiable.
Salaries and bonuses to chief executives across the world and industries are blown out of all proportion.
Even a leading body from the City stated that the system for rewarding executives at UK-listed companies was "not fit for purpose."
HSBC chairman Douglas Flint said: "The board was acutely aware for the performance of its shares, which have fallen by more than one fifth since last year's annual meeting."
He told investors: "We had expected that the remuneration policy you approved back in 2014 would not need to be refreshed until it expired next year.
"However, regulatory changes as well as responding to shareholder feedback have caused us to make some revisions to this and so we are bringing it back for your consideration this year. The impact of the new policy is to lower the maximum opportunity for the executive directors by around 7 per cent."
Mr Gulliver said: "The global economic outlook was uncertain but HSBC remained committed to paying higher dividends subject to long-term profitability.
"By the end of 2017, we will have further simplified the organisation, addressed the biggest drags on our performance and refocused the business to capitalise on the opportunity we are privileged to have access to through our strong presence in Asia."
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