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Share Price: 685.50
Bid: 685.90
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Change: -4.70 (-0.68%)
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UPDATE 1-HSBC to announce bonuses totalling 2.4 bln stg-report

Sat, 22nd Feb 2014 16:45

LONDON, Feb 22 (Reuters) - HSBC will announce staffbonuses totalling just under 2.4 billion pounds ($4 billion)globally for 2013 and is expected to report a significant risein pretax profit, Sky News reported on its website on Saturdaywithout citing its sources.

Referring to an unnamed source close to the bank, Sky alsosaid Chief Executive Stuart Gulliver will receive a 1.8 millionpound bonus as part of an overall pay deal worth more than 7million pounds, though this would be less than his previous yearpay deal of 7.4 million.

Europe's biggest bank is expected to announce the size ofits bonus pool on Monday along with its yearly results. Bonuspayments remain a sensitive issue as many Britons still blamebanks for the 2008 financial crisis, after which the state wasforced to bail out RBS and Lloyds.

Earlier this month Barclays prompted an angryreaction from politicians and labour unions after it increasedits bonuses by 13 percent to 2.4 billion pounds, even as itannounced plans to axe 12,000 jobs.

Sky quoted an unnamed source saying the rise in variable payor bonuses at HSBC would be smaller than its likely increase inearnings.

The broadcaster also reported Gulliver's bonus was just overhalf the maximum he could have received under the terms of hiscontract and that he would be paid a deferred share award of 3.7million pounds under the bank's long-term incentive plan.

He would also take a cash payment in lieu of pensioncontributions alongside his basic salary of 1.25 million, givingthe total of more than 7 million, according to an unnamedsource.

A spokesman at HSBC declined comment.

The bank's overall bonus payments would be marginally higherthan its 2012 bonus pool of 2.2 billion pounds and would comeonly a year before a new EU bonus cap which Britain is resistingthrough the courts.

The new rules would mean from 2015 bonuses cannot be morethan fixed salary, or double this amount if a bank obtainsshareholder approval.

Banks including HSBC, Barclays and Goldman Sachs areamong the banks expected to raise the non-bonus part ofremuneration with, for example, monthly or quarterly"allowances".

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