‘The boss of the biggest bank in the UK, HSBC, is to get a pay rise of nearly 70 per cent with extra allowances added to his salary meaning that he will get a minimum of £4.2m a year, up from £2.5m.
The move to increase this element of Stuart Gulliver’s “compensation” was interpreted as a way to get round a European Union cap on bonuses – restricting them to 200 per cent of salary — and came as he predicted widespread closures of bank branches outside of cities. HSBC’s annual report showed profits rose 9 per cent to £13.6bn in 2013.
Mr Gulliver said: “We had a compensation plan here that the shareholders liked but sadly because of the EU directive we’ve had to change. This isn’t something we would have wanted to do … It’s much more complicated.”’
Death knell for the traditional local bank branch: HSBC chief warns of fewer cash transactions
‘The death knell for traditional high street banking was sounded by the head of HSBC yesterday.
Stuart Gulliver says his staff will in future cater for ‘higher value activities’ such as mortgages and share trading instead of handling cash and cheque payments.
He also predicts that city areas will have the lion’s share of a reduced number of branches.
Insisting that most younger people bank online, he said: ‘You won’t be offering a branch walk-in facility for what can be described as a banking facility because the footfall won’t be there.’