Bonus Watch ’14: HSBC Has A Plan

They’ll be upping everyone’s “allowance” to compensate the EU’s so-called “bonus caps.”

HSBC became the first bank to reveal how it plans to sidestep a new EU cap on bonuses, hiking the fixed pay of hundreds of senior executives even as its profit growth fell short of analysts’ expectations. The bank’s top three executives will receive fixed “allowances” worth about 130 per cent of their salaries this year, the bank said on Monday. Stuart Gulliver, chief executive, will be given a £1.7m fixed allowance on top of his £1.25m salary. The changes, which will affect 665 staff, are intended to cope with new EU rules that limit bonuses to no more than 200 per cent of salary from this year.

HSBC Plans To Sidestep EU Bonus Cap Revealed [FT]

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3 Responses to “Bonus Watch ’14: HSBC Has A Plan”

  1. Guest says:

    And if the bankers fix their beds in their beds in the morning and take out the trash, do they get more?

    • Jackie says:

      If they agree to fix their own beds they will get a voucher for free oatmeal breakfast.

      – LifeWorks Benefit Coordinator

  2. Sophia says:

    When will banks learn, pay your staff good wages that reflect the work they do not the current ridiculous ones they get. Then pass on the some of the money to your customers, the first bank to do that will grow exponentially in no time! They could at least invest some of their cash in their HSBC Telephone Banking service, and get a few staff on there. I hate talking to automated machines!