LONDON, Oct 21 (Reuters) - European rules to cap bankers'bonuses at twice fixed pay are "a retrograde step" that goagainst improvements in pay structure, the head of Europe'sbiggest bank HSBC said, adding he hoped authoritieswould find a better solution.
"The proposals out of Europe in terms of capping the ratioof variable to fixed (pay) is a retrograde step againstlong-term deferral," Douglas Flint, HSBC chairman, told UKlawmakers on Tuesday.
"Hopefully we'll find a balance over the coming months andyears to readdress that, because it's terribly important that wehave a balanced framework that protects the system fromexcessive risk taking, which deferral and clawback does, but atthe same time isn't so uncertain that we find it difficult toattract people into the industry," he said.
Flint was speaking to the House of Lords EU Economic andFinancial Affairs sub-committee. (Reporting by Steve Slater; editing by Jason Neely)
HSBC Holdings (HSBA)