HSBC Holdings (LON:HSBA) has updated investors on its remuneration policy, announcing that it would trim the pension contribution element for executive directors. The move comes ahead of the blue-chip lender’s annual general meeting on April 12.
HSBC’s share price has been steady in London in today’s session, having climbed 0.27 percent to 622.10p as of 09:53 GMT. The stock, however, is marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.54 percent higher at 7,224.26 points. The group’s shares have given up about 11 percent of their value over the past year, as compared with about a one-percent gain in the Footsie.
HSBC updates on remuneration policy
HSBC announced in a statement this morning that its Remuneration Committee (RemCo) had decided that for any new executive director, the cash in lieu of pension allowance will reduce to 10 percent of base salary from its current level of 30 percent. The change will be applied to the pension contribution element in respect of both the existing executive directors and any new executive director under the 2019 Policy.
“Today we are announcing an important clarification of our new remuneration policy to reduce executive director pension contributions following consideration of emerging market practice,” Pauline van der Meer Mohr, Chair of the RemCo, said in the statement. HSBC explained that the move follows consultation of the RemCo with a number of key shareholders.
Analysts on Asia-focused lender
Numis Securities, which sees HSBC as ‘reduce,’ lowered its price target on the shares from 575p to 550p this week, while Goldman Sachs, which is ‘neutral’ on Europe’s biggest bank, trimmed its valuation on the stock from 780p to 775p. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 665.81p.