Mar 15, 2019
HSBC bows to investor pressure and cuts executives’ pay
HSBC has cut the pay of its top executives after caving in to pressure from investors over the amount of cash it pays to its leaders instead of a pension contribution. The reduction will bring executive pay in line with the average pension contribution of bank employees, which is about 9 per cent of their salary. Investors had criticised the bank for flouting new executive pay guidelines under the UK corporate governance code released last July, which said executive pension contributions should be in line with those of a company's workforce, or explain why they are not. In its 2018 annual report the bank said its chief executive last year earned 118 times more than the median pay of its UK employees. In 2016 the bank lowered the cash payment in lieu of pension for executives to 30 per cent of base pay, down from its previous policy of 50 per cent.
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