• Text size      
  • Send this article to a friend
  • Print this article

HSBC chief executive Stuart Gulliver gets £8m as profits rise

HSBC racked up profits of nearly £14 billion today after a year in which its chief executive was handed a pay package worth more than £8 million.

The pay-out for Stuart Gulliver and the bank's revelation that 239 staff received more than £1 million last year risked stoking anger over bank bonuses.

In addition, HSBC outlined measures that will see it sidestep new EU rules on bank bonuses by offering senior staff fixed pay allowances.

In the case of Mr Gulliver, his base salary will remain at £1.25 million but he will receive a fixed pay allowance of £1.7 million, to be awarded in shares on a quarterly basis.

It will not be tied directly to performance and so would not count as a bonus under new European rules preventing bankers from being paid bonuses worth more than two times their salary.

The controversial new rules from Brussels came into effect in January, meaning that 2013 was the last year in which big bonuses could be paid.

Mr Gulliver's previous pay scheme offered an annual bonus worth up to three times his salary, plus a longer-term share award that pays out as much as six times salary.

Shares in HSBC slumped by more than 4% in early trading after its profits of £13.6 billion rose 9% on a year ago but came in below City expectations.

Contextual targeting label: 

Commenting & Moderation

We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis.
If you're a relatively new user then your comments will be reviewed before publication and if we know you well and trust you then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules

Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.