crewsunite
26th Sep 2010, 06:31
We should have been bankers... These guys know how to squeeze the life blood out of others.. and tighten their control on the general population.
Workers with skills that matter need to take a stronger stance !! To level the efforts of inflation.. :ooh:
Stuart Gulliver, who emerged from Friday's management shake-up at HSBC Holdings (SEHK: 0005, announcements, news) as the chief executive-designate, faces a pay cut of close to 40 per cent compared with his earnings last year once he starts his new job in Hong Kong in January.
Gulliver (pictured) currently heads HSBC's global banking and markets operations and received total remuneration last year of £9.83 million (HK$120 million), including a base salary of £800,000 and a whopping £9 million deferred bonus.
As chief executive, Gulliver will see his base salary rise to £1.25 million. But under HSBC's current compensation policy, his future bonus is capped at four times his annual salary - meaning his maximum pay will be around £6.25 million, not including an annual pension allowance of around £600,000.
"Stuart Gulliver's total compensation is expected to be less than he currently receives," HSBC said in a statement announcing the appointment. This is despite the added responsibility of the chief executive role.
The discrepancy in pay is due to different bonus plans.
Gulliver, who joined HSBC in 1980 and has worked in Hong Kong, Tokyo and Kuala Lumpur, is largely credited with spearheading the rapid expansion of the bank's capital markets business since he took over the segment in the early 1990s.
Last year saw HSBC's profit from the segment soar as global markets rallied in a broad recovery from the September 2008 onset of the financial crisis.
Gulliver's "compensation arrangements take into account wholesale banking market practice", according to HSBC's annual report. In turn with the market rally, he saw his bonus balloon to £9 million last year, more than double that of outgoing chief executive Michael Geoghegan during the same period.
Still, other factors are likely to weigh on the overall value of Gulliver's take-home package. Markets don't always outperform like they did last year. Indeed, Gulliver received no bonus in 2008, while Geoghegan received a £4 million bonus - which he donated to charity.
At the same time, Gulliver's move to Hong Kong from London will entitle him to a generous expatriate housing and living allowance.
And not to be overlooked is the significant potential impact of differing rates of income tax on take-home pay. Britain's income tax rates are around 50 per cent at the upper levels, while Hong Kong's are capped at a more bearable 15 per cent.
Gulliver's appointment came amid a broader shake-up at HSBC in the wake of the announcement earlier this month that chairman Stephen Green was leaving to take up a post as Britain's trade minister.
The Financial Times last week reported there had been a boardroom dispute at the bank, with Geoghegan threatening to resign if he was not made chairman.
Speaking in a media conference call following the bank's announcement, Geoghegan dismissed the report as nonsense and said he had made the decision to retire 10 days ago.
Geoghegan will step down as chief executive at the end of the year but remain a consultant to the bank until next March, HSBC said.
Green will be replaced as chairman in December by current chief financial officer Douglas Flint, who, like Green, will be based in London.
Workers with skills that matter need to take a stronger stance !! To level the efforts of inflation.. :ooh:
Stuart Gulliver, who emerged from Friday's management shake-up at HSBC Holdings (SEHK: 0005, announcements, news) as the chief executive-designate, faces a pay cut of close to 40 per cent compared with his earnings last year once he starts his new job in Hong Kong in January.
Gulliver (pictured) currently heads HSBC's global banking and markets operations and received total remuneration last year of £9.83 million (HK$120 million), including a base salary of £800,000 and a whopping £9 million deferred bonus.
As chief executive, Gulliver will see his base salary rise to £1.25 million. But under HSBC's current compensation policy, his future bonus is capped at four times his annual salary - meaning his maximum pay will be around £6.25 million, not including an annual pension allowance of around £600,000.
"Stuart Gulliver's total compensation is expected to be less than he currently receives," HSBC said in a statement announcing the appointment. This is despite the added responsibility of the chief executive role.
The discrepancy in pay is due to different bonus plans.
Gulliver, who joined HSBC in 1980 and has worked in Hong Kong, Tokyo and Kuala Lumpur, is largely credited with spearheading the rapid expansion of the bank's capital markets business since he took over the segment in the early 1990s.
Last year saw HSBC's profit from the segment soar as global markets rallied in a broad recovery from the September 2008 onset of the financial crisis.
Gulliver's "compensation arrangements take into account wholesale banking market practice", according to HSBC's annual report. In turn with the market rally, he saw his bonus balloon to £9 million last year, more than double that of outgoing chief executive Michael Geoghegan during the same period.
Still, other factors are likely to weigh on the overall value of Gulliver's take-home package. Markets don't always outperform like they did last year. Indeed, Gulliver received no bonus in 2008, while Geoghegan received a £4 million bonus - which he donated to charity.
At the same time, Gulliver's move to Hong Kong from London will entitle him to a generous expatriate housing and living allowance.
And not to be overlooked is the significant potential impact of differing rates of income tax on take-home pay. Britain's income tax rates are around 50 per cent at the upper levels, while Hong Kong's are capped at a more bearable 15 per cent.
Gulliver's appointment came amid a broader shake-up at HSBC in the wake of the announcement earlier this month that chairman Stephen Green was leaving to take up a post as Britain's trade minister.
The Financial Times last week reported there had been a boardroom dispute at the bank, with Geoghegan threatening to resign if he was not made chairman.
Speaking in a media conference call following the bank's announcement, Geoghegan dismissed the report as nonsense and said he had made the decision to retire 10 days ago.
Geoghegan will step down as chief executive at the end of the year but remain a consultant to the bank until next March, HSBC said.
Green will be replaced as chairman in December by current chief financial officer Douglas Flint, who, like Green, will be based in London.