Shareholder revolt on HSBC pay

|About: HSBC Holdings PLC (HSBC)|By:, SA News Editor

A last-ditch effort by HSBC to hold off a revolt on executive pay by cutting the chairman's bonus proves little help as more than 20% of votes cast at the annual meeting today were against the bank's three-year pay policy.

Among the issues is the bank's policy on granting fixed pay "allowances" as a way of getting around a new EU bonus cap. Unlike other lenders, HSBC hasn't capped these allowances, but instead made them variable to reflect the size of bonus schemes.

Sir Simon Robertson - the head of HSBC's pay committee - notes the bank is paying less than U.S. rivals like JPMorgan and Citigroup even as it tries to compete with them.