logo
Share SHARE
FONT-SIZE Plus   Neg

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

British financial services firm HSBC Holdings Plc (HBC,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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Federal Aviation Administration said several pilots complained about pointing of strong green laser beams at planes flying over Long Island. The location was around Farmingdale, during 9.30 pm and 10 pm. Searches are on to locate the exact source of the laser beam. The Federal official suspects that the beam came from a hand-held device. Discount retailer Big Lots, Inc. Friday reported an increase in income from continuing operations for the first quarter, from last year. The company also registered a surge in net income particularly as it had carried a loss from discontinued operations last year. Taco Bell, a division of Yum! Brands Inc, is planning to test delivery of food items on college campuses, the Street reported. The move comes at a time the fast food chain seeks to leverage demand for its popular breakfast and dinner items.
comments powered by Disqus
RELATED NEWS
Trade HSBC now with 
Follow RTT