HSBC backs down on pay deal for chief Michael Geoghegan

By Philip Aldrick, Banking Editor Published: 6:00AM GMT twenty-four February 2010

HSBC Hldgs

The hulk bank, Europe"s largest, has been arguing for an enlarge in salaries for Michael Geoghegan, arch executive, and Douglas Flint, financial director, on the drift that they have larger responsibilities following last year"s vital reshuffle.

Mr Geoghegan, who has altered to Hong Kong, has taken organisation plan from authority Stephen Green and Mr Flint has combined risk carry out to his duties. Under the compensate proposals, Mr Geoghegan"s bottom compensate could have risen from �1.07m to roughly �1.5m, and Mr Flint"s from �700,000 to �900,000.

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In reality, the compensate climb would have been far larger as HSBC directors can consequence up to eleven times their annual income in reward and long-term inducement awards each year. For Mr Geoghegan, a �350,000 compensate climb would have entitled him to a �3.85m enlarge in intensity annual earnings.

Shareholders done it transparent that a compensate climb would not be suitable in the stream meridian of annoy over senior manager compensate and bankers" bonuses. Mr Geoghegan is right away confronting vigour to relinquish his bonus, of up to �4.3m, for a second year using following the patience shown by management team at Barclays, Royal Bank of Scotland and Lloyds Banking Group. An proclamation is approaching after this week.

Mr Green has been one of the loudest industry critics of "wrong and honestly inflated" bonuses, arguing they have as well mostly been paid off groundless income rather than sure profits. HSBC has not indispensable taxpayer support.