HSBC to review executive pay following shareholder concern

HSBC is the latest company to face a backlash from shareholders over executive directors’ pay. At the bank's AGM, a new policy, aimed at reducing the maximum amount earned by executive directors by 7%, was unveiled. Executive directors could expect 30% of their base salary in lieu of pension instead of 50%, and while bonuses would be subject to a “a three-year forward-looking performance period”. Chairman Douglas Flint told the AGM that “regulatory changes as well as responding to shareholder feedback” had prompted the rethink of the company’s policy. Shareholders BP and Anglo American have also protested at boss’s pay deals.

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Banking giant HSBC said it will take steps to review pay packages for executive directors following concerns from shareholders.

The lender said at its annual general meeting (AGM) that it is looking to reduce the amount of money handed to executive directors in lieu of a pension from 50% to 30% of their base salary, while also making long-term incentives subject to a three-year forward-looking performance period.

It said the new policy could reduce the maximum amount its executive directors could earn by 7%.

Chairman Douglas Flint said at the AGM: "We had expected that the remuneration policy you approved back in 2014 would not need to be refreshed until it expired next year.

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"However, regulatory changes as well as responding to shareholder feedback have caused us to make some revisions to this, and so we are bringing it back for your consideration this year.

"The impact of the new policy is to lower the maximum opportunity for the executive directors by around 7%."

It comes after shareholders in oil giant BP voted to reject its remuneration report for the last year, which included a pay deal of 19.6 million dollars (£13.8 million) for chief executive Bob Dudley.

Mining giant Anglo American has also faced investor protests after 42% of shareholders voted against chief executive Mark Cutifani's £3.4 million pay package for 2015.