LONDON, Jan 7 (Reuters) - HSBC is planning to handnew share awards to about 1,000 of its top staff as part of aplan to cope with new European rules that cap the level ofbonuses that banks can pay, an industry source said on Tuesday.
The plan, which has not been finalised, would have the characteristics of variable pay but qualify as fixed pay,helping Europe's biggest bank meet the new rules.
Sky News, which first reported the plan, said the paymentswould be in quarterly instalments and staff would need to keepthem for five years.
HSBC declined to comment.
Many banks are restructuring pay after EU rules came intoforce this month that will cap variable pay at twice anemployee's fixed salary. Barclays is planning to paystaff in specific risk-taking roles an additional monthlypayment, and other banks are expected to follow with similarmodels.
Barclays (BARC)
HSBC Holdings (HSBA)