Breaking News
FONT-SIZE Plus   Neg
Share SHARE
mail  E-MAIL

Reports: HSBC, Standard Chartered To Cut CEO, Executive Bonuses

RELATED NEWS
Trade HBC now with 
3/3/2013 10:39 PM ET

British financial services firm HSBC Holdings Plc (HBC: Quote,HSBA.L) and peer Standard Chartered Plc (STAN.L,STAC.L, SCBFF) are set to cut annual bonuses for their chief executives as well as senior executives after the two banks were stung by hefty fines for violating US money-laundering laws, according to media reports on Sunday.

The executive bonus cuts could be announced along with the banks annual results over the next two days.

London-based HSBC, Europe's biggest bank by market value, is reportedly expected to give Chief Executive Stuart Gulliver a 2012 bonus of just below 2 million British pounds, down from the 2.1 million pounds he received for 2011.

HSBC reached a hefty 1.2 billion pound settlement with U.S. regulators to settle money laundering and sanctions breaches which saw HSBC's Mexican arm being used by drug cartels and terrorist organizations.

HSBC, which is reportedly anticipated to post record annual profits, is expected to pay total bonuses of about 2 billion pounds in 2012, compared to the 2.8 billion pounds paid last year.

Meanwhile, rival Standard Chartered could end up cutting Chief Executive Peter Sands' annual bonus to below 2 million pounds, compared to the 2.3 million pounds he received for 2011. The bank is expected to payout total bonuses of about 930 million pounds, compared to 1.02 billion pounds in 2011.

Standard Chartered also reached a 667 million pounds settlement with U.S. regulators to settle violations of US sanctions laws and U.S. dollar payment practices. The bank was charged for failure to disclose transaction through their subsidiaries in the U.S. with Iran as well as three countries Myanmar, Libya and Sudan when they were under U.S. sanctions.

HBC closed Friday's regular trading session at $54.83, down $0.61 or 1.10% on a volume of 1.45 million shares.

On the London Stock Exchange, HSBA.L closed at 728.10 pence, down 3.30 pence or 0.45% on a volume of 22.55 million shares, and STAN.L closed at 1,781.00 pence, up 15.00 pence or 0.84% on a volume of 4.91 million shares.

Register
To receive FREE breaking news email alerts for HSBC Holdings PLC and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Restaurant operator Yum! Brands Inc. said Tuesday after the markets closed that its first quarter profit rose 18% from last year, helped by strong performance of its China division. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations, but its quarterly revenue fell short of analysts' forecast. After trending higher over the past several sessions, stocks saw some further upside during trading on Tuesday. A positive reaction to the latest corporate news contributed to the continued buying interest, lifting the Dow and the S&P 500 back near their record highs. In a blow to supporters of affirmative action, the Supreme Court on Tuesday upheld a voter-approved ban on using race as a factor in college admissions at Michigan's state-run universities. The court ruled 6 to 2 that the state law banning the use of racial preferences does not violate the U.S. Constitution, although the court was splintered on the reasoning for the decision.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.