HSBC’S top executives are to lose out on their lucrative performance bonuses this year as a result of the chronic underperformance of the company’s shares.
Britain’s biggest bank has been one of the poorest performing stocks in the FTSE100 index this year, and one of the worst performing bank stocks in the world, because of worries about bad debts in its U.S. business. HSBC bought U.S. predatory lender Household International.
While the average European bank has delivered a total shareholder return of 21 per cent this year, HSBC has clocked up gains of just 4 per cent. Its performance also lags far behind that of the other British banks. Over the past three years HSBC shares have gained just 6 per cent while HBOS has soared almost 60 per cent higher and the FTSE banking sector has gained 28 per cent.
Consumer advocates at Household – HSBC Watch say the report is an eye opener but no surprise to Americans.