HSBC Chief Executive Michael Geoghegan donates bonus to charity
Last updated 02/03/2010 10:21:12
HSBC Chief Executive Michael Geoghegan donates bonus to charity
HSBC Chief Executive Michael Geoghegan is to donate a £4m bonus to charity. Mr Geoghegan said he would give his £4m to charities around the world between now and 2013, the period when the bonus is due.
The bank reported a 24% fall in pretax profit for 2009 to $7bn (£4.63bn). Its annual report showed that the company had intended to hand the chief executive a pay rise "in light of the international competition position and the increased responsibilities". He refused the rise in his £1m salary.
It's reported that five bankers at HSBC shared a bonus bonanza of more than £38m last year. A statement by Mr Geoghegan on the matter will be viewed by some as HSBC trying to demonstrate that it's heeding public concern about City pay, but the chief executive's declaration refers to his "three decades" of charitable support.
The chief executive, whose total pay reached £5m, said: "Further to the considerable speculation on my own circumstances, I have reluctantly decided to make a short statement for the record so we can focus on today's real business, the reporting of HSBC's annual results.
"Like many people in business generally and within HSBC specifically, my wife and I have anonymously supported educational charities and projects in a number of different countries over the last three decades."
He explained that last year his charitable giving fell after he told the bank's remuneration committee not to give him a bonus after a record-breaking rights issue to bolster the bank's capital cushion.
"This year the performance of HSBC is significantly stronger and shareholders have seen rises in the equity value of their stock as well as continuing to receive quarterly dividends. I have therefore accepted an award of deferred stock, releasable over the next three years and subject to certain conditions," Mr Geoghegan said.
"Provided that the stock is released I can confirm that between now and 2013 I will give up to £4m to charities around the world, including important causes in Hong Kong and in the UK, where I was a resident for six years until January this year. It is uncomfortable for my wife and I to make public things that we have endeavoured to keep very private and I hope you will understand and respect that I will not be commenting further on this matter."
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