HSBC shareholders are expected to approve a vote to formally scrap the bankers’ bonus cap at its annual general meeting on May 3, opening the door for Europe’s largest bank by assets to set higher levels of variable pay for senior management in the UK and other markets outside the EU.
The vote follows the lifting of the bonus cap — which limited bankers’ bonuses to a maximum of double their base pay — in October by the Bank of England’s prudential arm. For some UK banks, including HSBC, Lloyds and Barclays, the bonus cap was incorporated into their corporate rulebooks via a shareholder vote, necessitating fresh shareholder approval for its removal.
