HSBC thinking to take bonuses in shares rather than cash

After the huge issues that banks all over the world faced, with some of then having to be bailed out by public funding there is a huge issue around the issue of senior management bonuses. Some of the bank bosses of these banks, including Lloyds and RBS have already announced that they will be forgoing their bonuses. Now it's HSBC turn...although the bank hasn't been bailed out from public funding it still had to resort to a gigantic right issue (£12 bn) and public opinion was not in favour of such bonuses being handed out.

Michael Geoghegan, HSBC's chief executive, is believed to be ready to announce that he will not be taking the bonus in cash (as this could be a drain on the bank liquid finances) but instead could opt in taking his bonus in shares rather when the bank reports its full year results tomorrow.

HSBC is expected to announce it made profits of more than $11bn during 2009. But its chairman, Stephen Green, who is paid a salary of more than £1m will once again announce he will be waiving his bonus entitlements for the third consecutive month.

Will this surge of public anger in the face of huge bonus paid to banking executives lead to a new era of banking executives?

Tesco aiming to add a Bank to its portfolio

What happened of Northern Rock...is the Brisith Government seeking to rebuild the bank or will he try to sell it off with the aim of making a profit?

I found the answer while reading an article on a marketing magazine online...apparently Tesco is reported to be considering a bid for Northern Rock, the bank which was nationalised last year after running into liquidity problems stemming from the sub-prime mortgage crisis. Tesco, the largest supermarket in UK, already offers a range of Tesco-branded financial products, including savings accounts, credit cards and loans.

Opinion at the moment is that consumers see supermarkets such as Tesco and Marks & Spencer as more trustworthy than banks, and these brands are keen to capitalise on the sentiment. The Cooperative group for example already offers banking facilities to its customers. This is not the first attempt by a private company to buy the nationalised bank Prior to this Virgin had tried to buy Northern Rock. The Times reports that it is also considering making another bid, along with private equity firms.


The paper says that prime minister Gordon Brown is keen to sell Northern Rock back into private ownership at a profit before an election and avoid the Conservatives taking credit for any such deal. There are also plans of splitting Northern Rock in different Units and then selling each individual unit indipendently so as to make its sale more attractive.


This would leave "toxic" loans in the hands of the public, with one half of the business responsible for paying back money lent it by taxpayers. The plan must be approved by the European Union