HSBC chief executive to give bonus to charity
Michael Geoghegan, the chief executive of HSBC, is in line for a £4 million bonus this year but he has revealed plans to give this to charity. However, five of the company's top earners will share a bonus pot of £35 million. The highest bonus is set to go to Stuart Gulliver, the head of the company's investment banking division, who is in line for a £9 million bonus which he has indicated he will retain.
While HSBC, along with other UK banks, has attempted to appease public disdain over the level of bonuses being awarded while the rest of the UK suffers, there is still no hiding the fact that the sector has returned to boom times. This comes just after UK taxpayers were effectively forced to bail out Lloyds bank and Royal Bank of Scotland directly while pumping billions upon billions of pounds into the money markets. It is this additional investment which has benefited all financial companies in the UK, and as yet has not been repaid, which is causing most aggravation.
However, the truth is that the worst is probably over for the UK banking sector with the government having already slapped a 50% tax on bonuses and set to increase the regulatory burden.
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