HSBC chiefs under fire over pay

HSBC has angered investors with its remuneration plans for top executives.

A £120 million pot is to be shared out among the directors over the next three years, under proposals which will be discussed at an upcoming shareholders' meeting in London.

Many attendees are understood to be prepared to vote against this scheme because they believe it rewards the bank chiefs too much, the Times reports.

Recently, corporate governance advisor Pirc has also dubbed the pay scheme "excessive".

Activist shareholder Eric Knight at Knight Vinke - who has campaigned against what the newspaper terms "aspects of [HSBC's] management and strategy" - is scheduled to be at the meeting.

In particular, the bank's exposure to the US sub-prime mortgage market prior to the sector's collapse last summer has caused concern from the Monaco-based investors.

Responding, HSBC said: "Knight Vinke's suggestion that there is something unusual about HSBC's accounting for its US sub-prime mortgage book is simply entirely wrong."