Five HSBC executives challenged over bonus pay
News from the U.K. this Thanksgiving day tells of how HSBC senior executives have been challenged over their proposed bonuses. Even though HSBC, “despite more than $20 billion (£9.7 billion) of provisions for credit and trading-related losses over the past two years”, possibly misled shareholders into believing that the executive bonus scheme was much less generous than it really was. We say “possibly” because that is the opinion of one legal expert.
Stephen Green, HSBC’s chairman, Mike Geoghegan, the chief executive, Douglas Flint, the finance director, and two retired executives are due to collect bonuses estimated at £5.8 million because of the lax way the scheme rules were drawn up, Knight Vinke said. The timing of the assault is designed to cause maximum embarrassment to Mr Green and Mr Geoghegan, who are due to make a presentation to institutions in London this afternoon. Mr Green is expected to make £1.2 million from the bonus scheme and Mr Geoghegan is in line for £1 million if HSBC meets earnings expectations.
Meanwhile layoffs continue in the United States and HSBC has remained quiet. Layoffs in HFC and Beneficial branches are estimated to involve between 2000- 2200 personnel, many of which still do not know their future. There has been no official press release.
Source of news
http://householdwatch.com/wp/2007/11/22/five-hsbc-executives-challenged-over-bonus-pay 
