Top HSBC directors receive shares worth over £7 mn

Top directors at HSBC have received shares worth over £7 million as lenders started to find ways around European bonus cap rules, Herald Scotland reported.

Chief executive Stuart Gulliver was among the 15 who received the so-called fixed pay allowance award receiving 135,458 shares,  worth around £795,000.

He immediately sold 63,666 shares at £6.26 each to raise £398,587 towards the cost of tax liabilities relating to the award.

HSBC, in all issued 1.13 million shares of which Samir Assaf, chief executive of global banking and markets, received the largest chunk with his 240,318, valued at more than £1.5 million, of which he sold 112,950 to cover the tax dues, Reuters reported.

Other banks are also giving staff allowances after being forced to limit cash bonuses capped at twice the fixed pay by Europe's regulator, in an attempt to limit risk-taking by staff.

Royal Bank of Scotland, 81-per cent taxpayer-owned remains under heavy public scrutiny over its pay. The bank said on Monday that it had awarded 10 executives role-based awards worth £3.5 million.

According to HSBC the shares formed part of a fixed remuneration package for the staff involved.

The lender handed out £3.4 million worth of shares to 10 executives earlier this week.

HSBC awarded shares worth £7.1 million pounds to 15 executives under the new role-based pay awards it brought in after European regulators capped bonuses for staff.