HSBC doubles salaries to beat clampdown on big bankster bonuses - Guardian.uk

[Bozita]

So, ... is your employer gonna join in?


http://www.guardian.co.uk/business/2010/nov/16/hsbc-bank-bonuses-goldman-sachs

HSBC doubles salaries to beat clampdown on big bonuses
Bank aims to circumvent European rules deferring bonuses and in a move that risks inflaming row about executive pay in the City
Tom Bawden and Jill Treanor
guardian.co.uk, Tuesday 16 November 2010 21.47 GMT
Article history


HSBC plans to double the basic pay of hundreds of its top investment bankers in a move that risks inflaming the row about City pay.

Amid growing opposition to large cash awards, from the government, regulators and the public, the banking group will significantly increase the percentage of the total payout that its senior investment bankers receive as salary, and reduce the bonus component. New Europe-wide rules, which are likely to be finalised next month, will defer the payment of bonuses and reduce the percentage paid in cash.

As the pay increases are handed out by HSBC to staff across the world, especially those in London, New York and Hong Kong, Goldman Sachs is preparing to name 100 or so new partners, who will immediately be propelled into top-earning status at the Wall Street firm.

In a sign of the tension surrounding the payment of huge banking bonuses at a time of public spending cuts, Treasury minister Mark Hoban said today that the banks would have to "think very hard" about the forthcoming bonus round.

HSBC's move came to light less than a fortnight after the bank complained bitterly about the impact of new bonus rules, which it warned may force it to reconsider its London headquarters. HSBC said then that it had failed to hire up to 15 bankers in Hong Kong because of a Financial Services Authority rule that stops it offering two-year guaranteed bonuses.

Furthermore, it complained that the new rules could place it at a disadvantage compared with banks based in the US. The rules are being brought in by the Committee of European Banking Supervisors and are expected to allow recipients to be paid only a fifth of their bonuses upfront as cash. The rest will be spread out over at least three years and much of it will be in shares.

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[Rage for Order]

1. How unfair to those banks and their potential employees!!!

:sarcasm:

:eyes:

[Angry Dragon]

2. In reality these asses produce nothing, move money around and they just

cause prices to rise on consumer goods.

[Jack Rabbit]

3. I'm sure tar and feathers would be more effective

And bankers are so deserving . . .