HSBC under fire over executive allowance
It has been revealed that HSBC handed chief executive Michael Geoghegan a £300,000 living allowance to "ease his relocation to Hong Kong". This figure was highlighted in the company's recent report and accounts and is on top of his £1.15 million annual salary. There were also further payments for "housing and other benefits in kind that are normal for this location" which are certain to catch the eye of shareholders who have been proactive regarding "excessive" remuneration packages.
In reality even though the £300,000 allowance has been deemed excessive by many in the banking arena it would not really have registered on the radar if it had not been for the current clamp down on excessive spending in the banking sector. While HSBC is slightly different from many UK companies as it has a large exposure to Hong Kong and the Far East it still has a significant presence on the UK high street and will have benefited indirectly from UK government assistance given to the money markets.
In many ways it seems that the boom times have already returned to the UK banking arena with improved remuneration packages, bonuses growing and some companies reporting record profits. The same cannot be said for the general UK population and many small to medium sized businesses.
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