HSBC claw back executives' bonuses re elderly saver scandal

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HSBC is set to strip its executives of part of their bonuses for the role they played in a mis-selling scandal that affected thousands of elderly savers.

Britain’s biggest bank is expected to confirm that it will become the latest to claw back shares and cash from a number of senior employees, as it posts annual profits up around 15 per cent to £13.8billion.

The news was expected to be revealed as the bank also confirmed a pay package worth up to £12.5 million for its chief executive Stuart Gulliver.

At HSBC, employees within its Nursing Home Fees Agency had persuaded pensioners as old as 94 to gamble their life savings on risky investments they might not have lived to see pay out.

Thousands of frail care home residents saw their life savings devastated by rogue financial advisers.

Sources close to the bank say it is unlikely to reveal details of how many employees will be affected, or how much they will have to return.

The board wanted to claw back a chunk of rewards already given to staff to demonstrate their horror at the mis-selling.

Last December HSBC was fined a record £10.5million and ordered to repay £29.3million after NHFA was found to have mis-sold investments to 2,485 pensioners between 2005 and 2010.

Victims were convinced to part with an average sum of £115,000, often nest eggs from the sales of their homes.

HSBC knew it would be in the spotlight as it becomes the first to link the names of its top bankers with individual bonus awards. It will publish the list today alongside its 2011 results, but its rivals will wait until next month.

Full item - thanks to Daily Mail:
http://www.dailymail.co.uk/news/article ... ds-newsxml