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| 200 HSBC staff paid more than £1m in 2012 | 200 HSBC staff paid more than £1m in 2012 |
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| HSBC paid 204 of its staff more than £1m in 2012, a year when Britain's biggest bank made profits of $20.6bn (£13.7bn) despite being fined £1.2bn by the US authorities for helping Mexican drug barons launder money through the financial system. | HSBC paid 204 of its staff more than £1m in 2012, a year when Britain's biggest bank made profits of $20.6bn (£13.7bn) despite being fined £1.2bn by the US authorities for helping Mexican drug barons launder money through the financial system. |
| At the start of a week in which Barclays and Royal Bank of Scotland are both expected to publish the pay of their highest earners for the first time, HSBC disclosed that 78 of those who took home more than £1m were based in the UK. | At the start of a week in which Barclays and Royal Bank of Scotland are both expected to publish the pay of their highest earners for the first time, HSBC disclosed that 78 of those who took home more than £1m were based in the UK. |
| Britain's biggest union, Unite, described the scale of the pay as an "outrage" given that some of its members at HSBC take home £14,000 a year and are facing changes to their pension schemes and holidays. | Britain's biggest union, Unite, described the scale of the pay as an "outrage" given that some of its members at HSBC take home £14,000 a year and are facing changes to their pension schemes and holidays. |
| The bank paid $200m of corporation tax in the UK on the profits, which were lower than the City expected, causing the shares to fall 2.5% to 710p. | The bank paid $200m of corporation tax in the UK on the profits, which were lower than the City expected, causing the shares to fall 2.5% to 710p. |
| The 2012 profits were down 6% on 2011 and included $5.2bn caused by accounting rules requiring the bank to take account of the cost of buying back its own debt. HSBC is lobbying for these rules to be changed and stressed underlying profits were up 18% at $16.4bn after making $1bn losses in the UK and $2.5bn of losses in the US. | The 2012 profits were down 6% on 2011 and included $5.2bn caused by accounting rules requiring the bank to take account of the cost of buying back its own debt. HSBC is lobbying for these rules to be changed and stressed underlying profits were up 18% at $16.4bn after making $1bn losses in the UK and $2.5bn of losses in the US. |
| It could yet be fined for rigging Libor but said there was "high degree of uncertainty" about ongoing investigations. "The potential impact and size of any fines" cannot be measured, the bank said. | It could yet be fined for rigging Libor but said there was "high degree of uncertainty" about ongoing investigations. "The potential impact and size of any fines" cannot be measured, the bank said. |
| HSBC, whose $1bn of UK losses were partly due to $2.3bn charges for misselling payment protection insurance and interest swaps, part of the US fine as well as the bank levy, makes a number of disclosures on pay. Banks are not required to disclose how many of their staff take home over £1m but HSBC has provided the number in recent years with out publishing the information in its annual report. | HSBC, whose $1bn of UK losses were partly due to $2.3bn charges for misselling payment protection insurance and interest swaps, part of the US fine as well as the bank levy, makes a number of disclosures on pay. Banks are not required to disclose how many of their staff take home over £1m but HSBC has provided the number in recent years with out publishing the information in its annual report. |
| To comply with UK rules HSBC said its eight highest paid staff reporting to the chief executive were handed between £2.3m and £7m, totalling just over £28m. Under Hong Kong rules its five highest paid staff received between £3.9m and £7.5m, and £27.8m in total. | To comply with UK rules HSBC said its eight highest paid staff reporting to the chief executive were handed between £2.3m and £7m, totalling just over £28m. Under Hong Kong rules its five highest paid staff received between £3.9m and £7.5m, and £27.8m in total. |
| Bonuses worth just $700,000 were clawed back from staff, according to a separate disclosure required to comply with international regulations which also showed that HSBC paid its 314 "code staff" – takers and spotters of risk – a total of $384.3m, an average of $1.2m.All employees are subject to a "values" test before being handed any payout, which the bank described as a "gating item". | Bonuses worth just $700,000 were clawed back from staff, according to a separate disclosure required to comply with international regulations which also showed that HSBC paid its 314 "code staff" – takers and spotters of risk – a total of $384.3m, an average of $1.2m.All employees are subject to a "values" test before being handed any payout, which the bank described as a "gating item". |
| HSBC's chief executive, Stuart Gulliver, was awarded a near £2m annual bonus for his "strong leadership" and "personal behaviour" in tackling the revelations that led to the US fine. The bank produced a number of methods for disclosing his pay, including one total of £8.9m – which included his £1.2m salary and benefits of £1.2m as well as £5.6m of bonuses which will be released to him next week from previous years and £780,000 of the £2m bonus he was awarded for 2012 which he received during the year. If the full £2m bonus is included – some of it is deferred for five years and subject to clawback – his take home pay rises to £10m. This does not include £3m of shares awarded to him for 2012 nor £4.1m of pay plans from prior years which vested during 2012. | HSBC's chief executive, Stuart Gulliver, was awarded a near £2m annual bonus for his "strong leadership" and "personal behaviour" in tackling the revelations that led to the US fine. The bank produced a number of methods for disclosing his pay, including one total of £8.9m – which included his £1.2m salary and benefits of £1.2m as well as £5.6m of bonuses which will be released to him next week from previous years and £780,000 of the £2m bonus he was awarded for 2012 which he received during the year. If the full £2m bonus is included – some of it is deferred for five years and subject to clawback – his take home pay rises to £10m. This does not include £3m of shares awarded to him for 2012 nor £4.1m of pay plans from prior years which vested during 2012. |
| Gulliver, who has been leading an effort to improve returns for shareholders and urged staff to demonstrate "courageous integrity", has closed or disposed of 26 businesses in 2012 and axed 27,700 jobs in the process, leaving the workforce at 270,000. In total 47 business have been axed since he was promoted from running the investment bank at the start of 2011. | Gulliver, who has been leading an effort to improve returns for shareholders and urged staff to demonstrate "courageous integrity", has closed or disposed of 26 businesses in 2012 and axed 27,700 jobs in the process, leaving the workforce at 270,000. In total 47 business have been axed since he was promoted from running the investment bank at the start of 2011. |
| The bonus pool took account of the US fine, although the investment bank bonuses were up slightly on 2011 at $1.3bn – although down across the group at $3.7bn. More bonuses could be clawed back during 2013, potentially including that paid to Sandy Flockhart, who retired with ill health in 2012 and used to run the Mexican business. Flockhart took home £782,000 in 2012 and is allowed to keep shares from bonus plans handed to him in the past. In 2012 these paid out £4.2m. | The bonus pool took account of the US fine, although the investment bank bonuses were up slightly on 2011 at $1.3bn – although down across the group at $3.7bn. More bonuses could be clawed back during 2013, potentially including that paid to Sandy Flockhart, who retired with ill health in 2012 and used to run the Mexican business. Flockhart took home £782,000 in 2012 and is allowed to keep shares from bonus plans handed to him in the past. In 2012 these paid out £4.2m. |
| HSBC used $8.3bn to pay dividends to shareholders and took the unusual step of revealing that three interim dividends for 2013 will be up 11% at $0.10 per share. | HSBC used $8.3bn to pay dividends to shareholders and took the unusual step of revealing that three interim dividends for 2013 will be up 11% at $0.10 per share. |
| Chairman Douglas Flint, who took home £3.7m last year, said the US fine had been "extremely damaging to HSBC's reputation". The bank had already "apologised unreservedly" for the incident in its US and Mexican operations, he said. | Chairman Douglas Flint, who took home £3.7m last year, said the US fine had been "extremely damaging to HSBC's reputation". The bank had already "apologised unreservedly" for the incident in its US and Mexican operations, he said. |
| The UK's government bank levy cost HBSC $571m, just under half of which was on its balance sheet outside the UK, which Flint said knocked $0.03 off the bank's dividend, which stood at $0.45 per share for 2012. Another measure of return – which measures the difference between the return on capital deployed by shareholders and the cost of that capital – showed that the bank made an "economic loss" of $5.1bn. The directors were penalised for failing to meet their targets for return on equity of up to 15% by reporting 8.4% but received bonuses based on the capital strength as the crucial core tier one ratio was 12.3% above the 10% target. | The UK's government bank levy cost HBSC $571m, just under half of which was on its balance sheet outside the UK, which Flint said knocked $0.03 off the bank's dividend, which stood at $0.45 per share for 2012. Another measure of return – which measures the difference between the return on capital deployed by shareholders and the cost of that capital – showed that the bank made an "economic loss" of $5.1bn. The directors were penalised for failing to meet their targets for return on equity of up to 15% by reporting 8.4% but received bonuses based on the capital strength as the crucial core tier one ratio was 12.3% above the 10% target. |