HSBC’s proposed new remuneration package for directors is set to incur the wrath of shareholders at the bank’s annual general meeting on Friday.
The scheme which offers generous annual bonuses and long-term incentives is expected to reward executives with a £100 million pay out over the next three years.
Pirc, which provides services to institutional investors on corporate governance, is advising shareholders to vote against the scheme. It argues that the scheme is excessive as it †would give executives the potential to receive bonuses amounting to 250% of their salary.
HSBC’s chief executive Michael Geoghegan has defended the bank’s scheme, claiming it is necessary to retain senior managers and attract talent.
Executive remuneration, in the form of one-off retention bonuses, has also given shareholders cause for concern at Royal Dutch Shell and GlaxoSmithKline in recent weeks.