Bonuses for HSBC bosses to be curbed

HSBC bosses will have bonuses restricted under the terms of a record $1.9 billion (£1.2 billion) settlement with US regulators after the bank allowed rogue states and drug cartels to launder billions of pounds through its US arm.

Senior executives are to reportedly defer a portion of any bonuses they are awarded for the next five years as part of an agreement with the US Department of Justice (DoJ).

HSBC was previously found to have ignored warnings and breached safeguards that should have stopped the laundering of money from Mexico, Iran and Syria.

Hide Ad
Hide Ad

On another gloom-filled day for Britain’s banks, HSBC unveiled the settlement, while three men were arrested as part of the Libor-rigging investigation and a Northern Rock spin-off revealed a huge compensation bill due to a far-reaching paperwork error.

HSBC reached agreement with several US authorities – including the DoJ – and expects to soon finalise a deal with the Financial Services Authority (FSA).

The bonus deferrals, under the terms of the DoJ’s Deferred Prosecution Agreement, are expected to hit dozens of managers including chief executive Stuart Gulliver, Sky News reported.

Mr Gulliver, who took charge of HSBC at the beginning of last year after the breaches occurred, said: “We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again.”