HSBC has decided to pay the cash part of its UK workers' bonuses through the issuing of shares due to new rules relating to capital ratios.
That is according to an insider at the major European bank, who has told Reuters that increasing pressure from regulatory bodies on financiers to improve the state of their balance sheets has resulted in the firm deciding to alter its bonus policies.
Consequently, this change of structure means that tens of millions of pounds worth of new shares will be handed over to members of staff to make up the difference on any non-deferred cash bonus in excess of £50,000.
Recently, bodies such as the Financial Services Authority and the Association of British Insurers have called for changes to be made to the way banks pay bonuses to their employees.
This comes after HSBC unveiled its new International SME Fund Initiative yesterday (21 February), which will see it provide $6.3 billion worth of credit to companies looking to trade overseas.
By Gary Cooper