Household HSBC Watch

Breaking news of February 28, 2005 showed Sir John Bond terminating William Aldinger, although downplayed by reports of early retirement. Profits were down at HSBC, but shareholders generally do not want to pay an early termination bonus simply because of lackluster profits. Research shows conflicting news reports on the subject. The numbers simply do not add up. Aldinger had a $37 million pay package. He will walk away with around $13.9m (£7m), including $4.6m in lieu of salary and bonus for the remainder of his three-year contract, plus share options worth around $9m.

“There is more to this story than what has been reported thus far. As researchers go to work, watch for more breaking news as the fallout continues” said Household - HSBC Watch, a watchdog organization that follows predatory lending.

Sir John made a statement recently which indicated he thought a couple of rogue branches were at fault. The Financial Times of December 24, 2004: “Household has faced accusations of predatory lending from consumer groups but Sir John attributes Household’s problems to ‘one or two rogue branches.’” Some analysts think Bond was embarrassed, examining the possibility that HSBC bought a worthless and almost bankrupt Household International. Aldinger was CEO of Household International.