HSBC CEO receives £800,000 to relocate to Hong Kong

8 March 2010

Michael Geoghegan, HSBC chief executive officer (CEO), is to receive an additional £800,000 a year for relocating from London to Hong Kong.

The banker will receive £300,000 as part of a cost of living allowance and a further £500,000 for housing, travel and the education of his children.

HSBC is providing the money “in recognition of the relocation to Hong Kong and the associated fixed costs of living that will be incurred”.

A spokesperson for HSBC told the UK’s Daily Telegraph: “This type of allowance is not unusual for the significant upheaval involved in relocating overseas including having family members living in two continents as a result.”

Details of the handout follows news that instead of accepting a £4 million bonus, Mr Geoghegan donated the sum to charity.

Shareholders recently voted against the CEO’s salary being raised by almost 40 per cent.

However, Stephen Green, HSBC chairman, recently claimed that the bank’s CEO was underpaid in comparison with bankers at his level of seniority working at other institutions.

Mr Geoghegan is the fourth highest paid CEO out of the six major banks while he is outside the top ten best-paid chief executives of FTSE 100 firms, Mr Green explained.

HSBC’s financial statistics for 2009 revealed that the bank posted a profit loss of 24 per cent during the year when compared with figures from 2008.

By Jim Ottewill

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