HSBC to disclose pay of top bankers
London, England, United Kingdom (AHN) – Hong Kong Shanghai Banking Corp. is set to disclose this week the pay of its top bankers, along with the financial performance of the British bank for 2010.
New HSBC Chief Executive Stuart Gulliver persuaded the bank’s board to make public the aggregate salaries and bonus pool for about 200 top earners. The disclosure comes on the heels of an earlier publication by HSBC of the five highest paid staff, in compliance with Hong Kong rules, without identifying the name of the top earners.
Gulliver, however, was named the highest paid bank official with a $15 million (GBP 10 million) package. Aside from the aggregate amount, HSBC will provide a breakdown of pay based on major bank divisions such as investment, corporate and retail banking.
HSBC is providing more details than mandated by law despite the much-criticized Project Merlin agreement by British banks with the coalition government that limited pay disclosure to the top five bankers reporting to the bank chairman. The HSBC list of top five earners included those inside and outside the boardroom.
HSBC is also expected to announce an $18 billion (GBP 12 billion) profit, boosted mainly by the bank’s growth in Asia.
The disclosure of the top 200 earners is mandated by the Financial Services Authority, however the regulation takes effect end of 2011. HSBC is complying with the FSA requirement nine months ahead of the rule’s implementation to help identify the key risk-takers and bank managers who influence the bank’s direction.
The FSA first implemented the disclosure rule, which covered 27 companies in London. Eventually, the authority found that 2,800 bankers got over $1.5 million (GBP 1 million) in 2009, but the banks did not provide a more detailed breakdown, prompting the new FSA requirement to mandate banks to provide more details.
Aside from HSBC, also expected to report this week their 2010 financial performance are Standard Chartered, expected to announce a more than $9 billion (GBP 6 billion) profit on Wednesday. On Thursday, the Royal Bank of Scotland announced a loss of $1.65 billion (GBP 1.1 billion), followed by Lloyds Banking Group which reported Friday a profit of $3.3 billion (GBP 2.2 billion).
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