Stephen Green, the chairman of HSBC, has criticised the bonus culture and remuneration levels that have been loved by the financial sector.Speaking to the Financial Times, Mr Green said that pay has become “distorted” due to the plethora of potential bonus options available to those working in the industry.”You’ve had bonuses paid off yucky income, you’ve had bonuses paid off first-day [profits], you’ve had bonuses paid without any capital charge and so you can see how that gives rise to the incorrect and frankly inflated numbers,” the HSBC boss said. But, Mr Green went on to predict that the new economic realities presented by the financial crash would bring about a fairer system.HSBC currently defers around 40 per cent of its bonuses but has yet to announce how much extra it will pay its bankers for work in 2009.Last week, HSBC chief executive Michael Geoghegan told Sky News that bankers were beginning to leave London in response to the higher levels of taxation being imposed on staff working in the banking industry there.
Posts Tagged ‘Sky News’
HSBC chief attacks bonus culture
January 27th, 2010 
Before You Invest 
Posted in Finance Fraud 
Tags: Banking Industry, Bonus Options, Boss, Chief Executive, Culture, Economic Realities, Financial Crash, Financial Sector, Financial Times, Gross Income, Hsbc, Inflated Numbers, London, Michael Geoghegan, Plethora, Profits, Remuneration Levels, Sky News, Taxation 
Comments OffUK regulators will be able to rip up bankers’ contracts
November 17th, 2009 Before You Invest The UK government is set to bring in legislation that will allow the Financial Services Authority to rip up the contracts of bankers deemed to be enjoying excessive pay packets as a reward for risk-taking.Although the new Financial Services Bill will not apply to current banking contracts and therefore will not affect 2009 bonuses, it is set to come into place from January next year.The measures are to be outlined on Wednesday in the Queen’s Speech.In comments reported by the Guardian, City spokesman Lord Myners told Sky News: “What we are saying to the shareholders and boards of directors is: get real, recognize that the previous levels of bonuses are socially unacceptable.” Other proposals that will be place forward by Gordon Brown’s government include one that will allow British customers to take part in US-style class action suits against financial institutions they feel have treated them terribly.Last week, Mr Brown sent officials to meet with the IMF to lobby for the implementation of a Tobin tax – a levy on transactions carried out between financial institutions.
Posted in Finance Fraud Tags: Boards Of Directors, British Customers, City Spokesman, Class Action Suits, Contracts, Financial Institutions, Financial Services Authority, Financial Services Bill, Gordon Brown, Imf, Levy, Mr Brown, Myners, Proposals, Shareholders, Sky News, Style Class, Tobin Tax, Uk Government, Uk Regulators No Comments »
