(Guardian) HSBC doubles salaries to beat clampdown on big bonuses
16 November 2010
Bank aims to circumvent European rules deferring bonuses and in a move that risks inflaming row about executive pay in the City
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.