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?
In another spin on this story, Times of Malta is reporting that Michael Geoghegan will actually donate up to four million pounds of his bonus to charity over the next four years!
ReplyDeletehttp://www.timesofmalta.com/articles/view/20100301/world-news/hsbc-boss-to-donate-bonus-to-charity
This should be something which top executives should start doing especially those that were responsible for the untimely decision which leD RBS, Northerrock and ABN AMRO (and others) close to closing down...at least this will make sure that they're remember for their good acts rather than their wrong decisions
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