HSBC caps bonuses of chairman to avoid criticism

Banking group HSBC has attempted to head off investor criticism over a new pay plan, capping any share bonus for its Chairman Douglas Flint this year at £1m ($1.68m) and saying it would be a one off.

Reuters reports that under new pay proposals set out in March, HSBC said it could have awarded Flint up to £2.25m ($3.77m) worth of shares as an annual bonus in exceptional circumstances.

The bank had said in 2010, when the former finance director became chairman, he would be paid his salary but no bonus and some investors were concerned about the change in structure.

HSBC said it had met with investors ahead of its annual shareholder meeting on May 23 and had made adjustments to the plan.

Simon Robertson, chairman of the remuneration committee, said in a statement if any award was made this year to Flint it would reflect changes to his responsibilities since his original appointment when salaries were set.

To access the complete Reuters article hit the link below:

HSBC says bonus for chairman capped at 1 million pounds

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