Big rise for HSBC boss 'blocked'

Mr Geoghan has relocated to Hong Kong

HSBC has given in to shareholder pressure and decided not to sharply raise its chief executive's base salary, according to reports.

The bank had consulted investors on plans to increase Michael Geoghegan's salary by 36% to about £1.4m ($2.2m), the Financial Times said.

But shareholders felt a pay rise went against current trends of showing restraint on pay, the FT added.

An HSBC spokesman declined to comment on the reports.

He said the bank would publish full remuneration details of its executives on 1 March in its annual report.

"It's important to note that HSBC has not taken any taxpayer money and we have been profitable, generated capital, paid dividends and very much remained open for business throughout the crisis," the spokesman added.

However some argue that while HSBC did not directly benefit from the rescue of the banking sector, it still benefited from the general stabilisation of the financial system by the UK government's intervention.

A source close to HSBC said its executive directors had seen their salaries frozen last year.

It is understood that Mr Geoghegan will still be entitled to his bonus of up to four times his salary - a maximum of £4.3m.

Asia focus

There has been public and political anger at banker bonuses and pay after the financial crisis.

Earlier this week, the chief executive of Lloyds Banking Group, Eric Daniels, decided to waive his £2.3m bonus for 2009.

That followed the decision by Stephen Hester, chief executive of Royal Bank of Scotland, to forego his 2009 bonus. RBS is 84% taxpayer-owned.

HSBC had also proposed increasing the salary of finance director Douglas Flint from £700,000 to £900,000, the FT said.

Earlier this year Mr Geoghegan said he was relocating to Hong Kong in order to provide greater focus on the bank's Asian operations.