HSBC Shareholders Back New Pay Plan as CEO Gulliver Takes Cutby
HSBC Holdings Plc shareholders approved the bank’s executive pay by a larger majority than last year after Chief Executive Officer Stuart Gulliver took a bonus cut and the bank lengthened deferrals for top managers.
More than 90 percent approved the executive pay report for 2015, after about 24 percent of shareholders opposed it in last year’s vote, the bank said Friday at its annual general meeting in London. Gulliver had his variable pay for 2015 cut 361,000 pounds ($513,000) to 3 million pounds, reducing his total compensation to the lowest since taking the CEO role in 2011.
Shareholders also backed the lender’s future pay policy, which boosts deferral of variable compensation for top executives to seven years from three years and cuts the cash given in lieu of a pension to 30 percent of their salary from 50 percent. Chairman Douglas Flint said at the meeting that the changes lowered the maximum amount executive directors could receive by an average of 7 percent.
“Regulatory changes as well as responding to shareholder feedback have caused us to make some revisions,” Flint said at the meeting.