HSBC Holdings Plc (HSBA) Chief Executive Officer Stuart Gulliver last year received 6.6 million pounds ($10.5 million) in pay, bonus awards from previous years and allowances.
That compares with total a payout of 3.9 million pounds in 2010, the bank said in its annual report, published today. Separately, Gulliver, 52, was awarded a 2.16 million-pound bonus and a 3.75 million-pound share award for 2011, which will be deferred for between one and five years and will be subject to clawback, the bank said. The bank today reported a 27 percent rise in profit to $16.8 billion.
Gulliver was in line for a bonus award for 2011 of as much as three times his 1.25 million pound-salary and a long-term incentive payment equal to six times his base pay. HSBC executives including Gulliver did not receive the maximum discretionary awards available to them for reasons including the bank’s improper sale of payment protection insurance in the U.K. and the advice given to elderly customers on products to fund nursing-home costs.
Prime Minister David Cameron’s government is demanding restraint from bankers over pay at a time when voters face salary freezes and unemployment is at a 17-year high. Business Secretary Vince Cable this month outlined measures to make companies more transparent on executive pay and to give shareholders more power to vote on it.
HSBC paid 192 employees more than 1 million pounds last year, including 64 personnel based in the U.K., a spokesman for the bank said.
The leaders of Britain’s two biggest government-controlled banks decided last month to waive their 2011 bonuses. Royal Bank of Scotland Group Plc CEO Stephen Hester, 51, gave up his 963,000-pound award after it sparked a political backlash, while Lloyds Banking Group Plc (LLOY) CEO Antonio Horta-Osorio said he wouldn’t take a 2011 bonus following his nine-week absence for exhaustion.
Robert Diamond, Barclays Plc CEO, declined to comment on his bonus after receiving a 6.5 million-pound award for 2010. Annual pay for executive directors and the eight highest-paid senior executives will drop by 48 percent, Barclays said Feb. 10.
“The annual bonus award made to S. T. Gulliver in respect of 2011 was based upon the committee’s assessment of the achievement of personal and corporate objectives as laid out in his performance scorecard,” HSBC said in the report.
“How can CEO Stuart Gulliver have a clear conscience over his reward package?” David Fleming, national officer of the Unite trade union, which represents bank staff, said in an e- mailed statement. “Countless reviews of the company’s operations to make short-term savings continue, while the top bankers take home enormous bonuses.”
Gulliver announced 30,000 job cuts last year and said today that 11,000 had already departed.
The CEO has accrued HSBC shares worth about 24 million pounds, according to the annual report. The bank cut bonuses at the securities unit by 26 percent to 1.2 billion pounds in 2011.
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