HSBC to Announce Bonuses Totalling £2.4 Billion

LONDON EVENING STANDARD: HSBC will announce staff bonuses totalling just under £2.4 billion globally for 2013 and is expected to report a significant rise in pretax profit, according to reports.

Europe's biggest bank is expected on Monday to announce the size of its bonus pool, a sensitive issue as many Britons still blame banks for the 2008 financial crisis after which the state was forced to bail out RBS and Lloyds.

Earlier this month Barclays prompted an angry reaction from politicians and labour unions after it increased its bonuses by 13 per cent to £2.4 billion even as it announced plans to axe 12,000 jobs. » | Agency | Saturday, February 22, 2014

Executive Bonuses Incur Wrath of Church of England

THE GLOBE AND MAIL: When Justin Welby became Archbishop of Canterbury last month, he made it clear the Church of England would become more active on issues involving business ethics. And his first move is to go after executive bonuses.

Archbishop Welby, who is also the spiritual head of Anglicans worldwide, is no stranger to business. He is a former oil company executive and he sits on a British parliamentary committee that is reviewing the conduct of banks in the wake of the financial crisis. He also once wrote a paper titled “Can Companies Sin?” and concluded they could.

In one of the first major announcements since he was enthroned, the Church of England announced last week that it would use its hefty investment clout to rein in executive bonuses, which it said had become excessive owing to a culture of entitlement and greed at many companies. Drawing on the Bible and a variety of studies, the church said it will vote against bonuses that exceed 100 per cent of base salary.

“Awards of more than 100 per cent of base salary can only be justified if an executive director has delivered extraordinary results through exceptional performance to the significant benefit of shareholders,” the church said in the new policy. It added: “Businesses are vehicles for wealth creation, without which there can be no wealth distribution. However, businesses cannot contribute to their full potential to a good society and human flourishing if they have no regard for the society in which they operate, and if individuals in business have regard only for themselves.” » | Paul Waldie | London | The Globe and Mail | Monday, April 22, 2013

Prime Minister's Questions: Cameron Out of Touch on Bonuses, Says Miliband
BBC: Labour leader Ed Miliband has accused David Cameron of being "out of touch" for opposing European Union plans to cap bankers' bonuses.

He claimed the prime minister was "straining every muscle" to help the rich while doing little for the poor.

But Mr Cameron said the Labour leader wanted to "play and pose politics", while the UK needed to do all it could to attract the world's largest banks.

The UK was the only EU country to oppose the cap in a vote on Tuesday.

Under the plan, bonuses would be limited to 100% of a banker's annual salary - or to 200% if shareholders approve.

During a lively Prime Minister's Questions session, Mr Miliband said Mr Cameron and Chancellor George Osborne were the only people who thought it was "a priority to fight for bigger bonuses". » | Wednesday, March 06, 2013

George Osborne Is Defeated 26 to 1 on EU Bonus Caps
THE DAILY TELEGRAPH: Britain was today defeated after being outnumbered 26 to one over controversial European Union proposals to impose caps on bonuses paid to bankers.

EU finance ministers overruled British opposition to the banking remuneration caps and "technical negotiations" over the detail of regulations to begin next week ahead of a final decision next month.

Michel Barnier, the European Commissioner for financial services, hailed a "crystal clear" deal allowing the EU to impose a bonus limit of 100 pc of salary, or a maximum 200pc after agreement with shareholders, from January 2014.

"The caps are fixed," he said. "These caps will be the basis of our work from now on. All the main points have been approved and will not change."

The caps will also apply to all European bankers working in New York, Hong Kong, Singapore or other overseas branches, again overriding British concerns.

Mr Barnier insisted that the EU was confident that the caps would survive the threat of legal challenges by banks because the legislation specified bonus ratios to existing salaries rather than setting precise ceiling figures for payments. » | Bruno Waterfield, Brussels | Tuesday, March 05, 2013