Can you name the CEO of HSBC? Could you rattle off a list of his favorite foods, like you could with Lloyd, or the girl he lost his virginity to, like you could with JD, which is to say, do you treat him like a celebrity you have a moderate to major obsession with (or just some banker)? No and no? That might've hurt Stuart Gulliver's ego in another time and place (like last year when he got paid a 2.9 million-pound bonus) but now his tears are dried by the 13.3 million pounds ($22 million) compensation package he's set to receive.
The bank’s compensation committee, which meets with investors this week, is proposing Gulliver should get a 1.25 million-pound base salary in 2011, a bonus of as much as three times that amount and a long-term incentive payment equivalent to six times his salary, said the people, who declined to be identified because the figures aren’t public. Gulliver would get the LTIP in shares after five years and would be required to own them until his retirement from the industry, the people said.
John Thornton, the ex-Goldman Sachs Group Inc. president who oversees HSBC’s compensation panel, is also asking investors to back a plan that would change the terms of Gulliver’s long- term incentive plan to include a range of non-financial targets such as reputation, brand and compliance, the person said. His predecessors’ targets were solely financial, and included return on equity and cost-efficiency ratios. The change is likely to meet opposition from some HSBC investors, the person said.
It's slightly unclear how "reputation and brand" will be quantified but it sounds like we can all be a part of making sure Gulliver gets paid.