HSBC's Stephen Green backs ‘market-based’ mega bonuses

Stephen Green, chairman of HSBC, has delivered some of the most stringent attacks on bankers' excess pay and bonuses over the last three years.

Green has given up his own bonus for two years running, but today he had to justify the bank paying what some analysts suggested could be as much as £1.5 billion in pay-outs.

"All through the difficulties of the last three years, we have remained profitable, taken no Government money and paid substantial dividends," he said.

"Remuneration must be responsible and acceptable but it must also be market-based. Underpaying ultimately results in a company losing its best people."

The HSBC boss said he strongly supported the G20 guidance on the bulk of bonuses being deferred and subject to clawback if there is underperformance.

But he indicated a shift in the balance of how his bankers should be paid.

He said: "Proper pay for proper performance includes ensuring market-based pay for employees over time.

"The board expects fixed pay in banking to increase as a proportion of total compensation, especially for important risk and surpervisory functions.

"We believe the decisions we have taken on this year's remuneration awards are right for all our stakeholders."

Green also called on governments and regulators to stop looking at the case of banks that are "too big to fail" and instead consider the case banks which are "big enough to cope" — which he clearly considers is the case for HSBC.