HSBC, Standard Chartered to Cut Bonus Payouts on U.S. Fines
HSBC and Standard Chartered will report a reduction in their bonus pools, reflecting separate settlements with U.S. authorities over probes into money laundering and sanctions violations, Sky News reported on Sunday.
HSBC's bonus pot will fall to about 2 billion pounds ($3 billion) from 2.8 billion pounds paid out in 2011, Sky News said on its website, with Chief Executive Stuart Gulliver expected to take home 6 million to 7 million pounds, including a bonus of just under 2 million pounds.
His counterpart at Standard Chartered, Peter Sands, will take home less than 2 million pounds in bonus payments, with the bank's overall bonus pool cut to $1.4 billion from $1.54 billion pounds, last year, Sky News said.
In December, HSBC reached a settlement with U.S. authorities and agreed to pay $1.92 billion to settle a probe into laundering money for drug cartels.
In the same month, Standard Chartered agreed to pay $327 million to resolve allegations that it violated U.S. sanctions against Iran, Sudan and two other countries on top of a separate payment the bank made in August last year to New York's state banking regulator over Iran sanctions.
Both companies declined to comment.
Copyright 2013 by Reuters. All rights reserved.
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