LONDON, Feb 23 (Reuters) - HSBC has shelved plans to award its chief executive a pay rise of more than a third, after shareholders rejected the proposals amid concerns of a rising backlash over banker pay, the FT reported on Tuesday.
HSBC has been discussing with investors increasing base pay for its top executives in the past two weeks, shareholders have told Reuters.
The bank was proposing increasing CEO Michael Geoghegan's pay by about one-third from 1.1 million pounds. The remuneration committee met on Tuesday, and details will be unveiled with its 2009 results on Monday.
A spokesman for the bank declined to comment on what executives will be paid, but said it was not uncommon to discuss the matter of pay with investors.
'It's not unusual to update shareholders on the subject of remuneration. The FSA has confirmed that the bank's policy is fully compliant with its Remuneration Code,' the spokesman said.
HSBC was also considering increasing the pay of its finance director, Douglas Flint to 900,000 pounds, the FT said.
Pressure has built on the bank to reign in financial rewards for top staff following the decisions by chief executives of UK banks to waive their bonuses in recent weeks.
In the last week chief executives at Barclays, RBS and Lloyds Banking Group have all said they will forgo their bonuses for 2009 as anger over 'fat cat' banker pay has become a major political issue in the run up to an election expected in May.
($1=.6482 Pound)
(Reporting by Caroline Copley and Steve Slater; Editing by Richard Chang) Keywords: HSBC/ (caroline.copley@thomsonreuters.com; +44 20 7542 7717) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
HSBC has been discussing with investors increasing base pay for its top executives in the past two weeks, shareholders have told Reuters.
The bank was proposing increasing CEO Michael Geoghegan's pay by about one-third from 1.1 million pounds. The remuneration committee met on Tuesday, and details will be unveiled with its 2009 results on Monday.
A spokesman for the bank declined to comment on what executives will be paid, but said it was not uncommon to discuss the matter of pay with investors.
'It's not unusual to update shareholders on the subject of remuneration. The FSA has confirmed that the bank's policy is fully compliant with its Remuneration Code,' the spokesman said.
HSBC was also considering increasing the pay of its finance director, Douglas Flint to 900,000 pounds, the FT said.
Pressure has built on the bank to reign in financial rewards for top staff following the decisions by chief executives of UK banks to waive their bonuses in recent weeks.
In the last week chief executives at Barclays, RBS and Lloyds Banking Group have all said they will forgo their bonuses for 2009 as anger over 'fat cat' banker pay has become a major political issue in the run up to an election expected in May.
($1=.6482 Pound)
(Reporting by Caroline Copley and Steve Slater; Editing by Richard Chang) Keywords: HSBC/ (caroline.copley@thomsonreuters.com; +44 20 7542 7717) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.