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.