HSBCs chief Michael Geoghegan forfeits bonus kudos

Published: 10:38AM GMT 05 March 2010

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Michael Geoghegan, Group Chief Executive, HSBC Holdings plc Photo: PA

The bank was a small bit less stirring about the annual �800,000 remuneration he will embrace for relocating to Hong Kong. The bank buried the sum of the remuneration low in Monday"s 504-page formula announcement.

Okay, Hong Kong isn"t cheap. In actuality it ranks fifth (behind Tokyo, Osaka, Moscow and Geneva) in those universe ranking surveys that see at the cost of hundreds of items, trimming from a one room penthouse to the common hamburger. But �800,000 is a lot of income quite when you cruise that Geoghegan will usually be taxed at 15pc on his Hong Kong earnings, as against to the 50pc rate (and rising) in the UK.

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HSBC has done small tip that it believes the arch senior manager is underpaid. The house voiced progressing this week that his remuneration, together with salary, will be brought up to "internationally rival levels inside of the subsequent twelve months".

No disbelief the relocation remuneration done up of a �300,000 a year annual stipend and �500,000 a year of "benefits in kind", together with housing, healing losses and propagandize fees will assistance to residence that in the meant time. But even if he does merit a rise, a "relocation payment" is not the approach to do it.

The remuneration reinforces the at large hold idea that bankers will regularly find a crafty loophole or a approach turn the rules.

Any Kudos that Geoghegan had gained from forfeiting his reward has been lost.