See the latest about Bobby and TransUnion
HSBC has been one of the poorest performing bank stocks in the world over the past 12 months, because of concerns about its exposure to high-risk lending in the US - which forced it to issue the first profit warning in the group’s history. Even though HSBC’s decision to buy predatory lender Household International proved to be a bad decision, HSBC paid bonuses to over 12,000 employees arounnd the world.
Comments on the HSBC scheme are buried in notes to the annual report of HSBC Bank plc. The notes said the group’s remuneration committee had “exercised its discretion, as permitted by the plan, to waive the [total shareholder return] performance condition”.
Those close to the story say HSBC did not want to spread more contempt for HSBC Finance employees, considered by some within HSBC as outsiders, shady, or predatory. Some say the division, and poor profits from the division, reflect poorly on a once-proud bank. Others speculate that the removal of Bobby Mehta and Sandy Derickson, both former Household International employees, will do little to stop anamosity.
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