[UK] HSBC wants to offer ‘Wall Street salaries’ to senior directors

In the UK, HSBC is weighing up whether it should raise the bonuses of senior directors - including its chief executive - to Wall Street levels and consulting shareholders on the matter, City A.M. reports.

The bank has cited “concerns about the competitiveness” of executive pay when measured against its Wall Street competitors.

HSBC reportedly told investors it intends to discuss restructuring CEO Noel Quinn’s remuneration, despite Mr Quinn’s pay package nearly doubling to £10.6m in 2023 due to long-term performance bonuses coming into effect.

In its annual report, HSBC’s remuneration committee said, “Over several years, the committee has expressed concerns about the competitiveness of the executive director remuneration… and indicated that our preference would be to operate a policy with a higher proportion of the package based on variable pay linked to performance.”

The news is the latest indication that the UK’s public companies are worried about losing talent to higher-paying firms listed in the US. 

Executive pay is reportedly regularly highlighted as one of the primary motivators behind so few companies choosing to list in the UK.

The Investment Association (IA) - an industry body for shareholders and investment managers - will issue revised advice this week on how to assess executive pay to “ensure they are supporting a competitive market” in the UK, according to Sunday Times reporting.

The IA says it rewrote the guidelines following discussions with 100 of the FTSE 350 members. It now advises members to be more lenient on firms that issue higher performance-linked compensation and so-called “hybrid schemes” that also include restrictive shares.

City A.M. reportedly approached HSBC for comment on this story.

Source: City A.M.

(Link and quotes via original reporting)

In the UK, HSBC is weighing up whether it should raise the bonuses of senior directors - including its chief executive - to Wall Street levels and consulting shareholders on the matter, City A.M. reports.

The bank has cited “concerns about the competitiveness” of executive pay when measured against its Wall Street competitors.

HSBC reportedly told investors it intends to discuss restructuring CEO Noel Quinn’s remuneration, despite Mr Quinn’s pay package nearly doubling to £10.6m in 2023 due to long-term performance bonuses coming into effect.

In its annual report, HSBC’s remuneration committee said, “Over several years, the committee has expressed concerns about the competitiveness of the executive director remuneration… and indicated that our preference would be to operate a policy with a higher proportion of the package based on variable pay linked to performance.”

The news is the latest indication that the UK’s public companies are worried about losing talent to higher-paying firms listed in the US. 

Executive pay is reportedly regularly highlighted as one of the primary motivators behind so few companies choosing to list in the UK.

The Investment Association (IA) - an industry body for shareholders and investment managers - will issue revised advice this week on how to assess executive pay to “ensure they are supporting a competitive market” in the UK, according to Sunday Times reporting.

The IA says it rewrote the guidelines following discussions with 100 of the FTSE 350 members. It now advises members to be more lenient on firms that issue higher performance-linked compensation and so-called “hybrid schemes” that also include restrictive shares.

City A.M. reportedly approached HSBC for comment on this story.

Source: City A.M.

(Link and quotes via original reporting)