HSBC boss admits to paying banker £13.7m bonus

HSBC boss admits to paying banker £13.7m bonus




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HSBC chairman, Stephen Green said yesterday that the financial system had done many things “wrong” as the debate on banking pay structures came to a head. Mr Green admitted to giving a single Wall Street banker £13.7 million in non-performance-related bonuses last year after poaching him from Deutsche Bank.

The banker, Tom Cole, is co-head of leveraged and acquisition finance in North America and was one of five executives at HSBC who together received £33.6 million during 2008. The executives headed successful divisions that collectively made £2.5 billion in profits last year, HSBC added.

 

Although Mr Green refused to comment on the controversial £8 million pension of disgraced former head of RBS, Sir Fred Goodwin, he did say that remuneration in the City was out of control.

 

The British-based directors of HSBC have declined any bonuses for 2009 as the group seeks to raise £12.5 billion.

 

Mr Green stated: “It is important to remember that many ordinary bankers have always sought to provide good service to their customers, but we must also recognise that there have been too many who have profoundly damaged the industry’s reputation.”

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