HSBC chief attacks bonus culture

Stephen Green, the chairman of HSBC, has criticised the bonus culture and remuneration levels that have been enjoyed by the financial sector.

Speaking to the Financial Times, Mr Green said that pay has become "distorted" due to the plethora of potential bonus options available to those working in the industry.

"You've had bonuses paid off gross income, you've had bonuses paid off first-day [profits], you've had bonuses paid without any capital charge and so you can see how that gives rise to the wrong and frankly inflated numbers," the HSBC boss said.

However, Mr Green went on to predict that the new economic realities presented by the financial crash would bring about a fairer system.

HSBC currently defers around 40 per cent of its bonuses but has yet to announce how much extra it will pay its bankers for work in 2009.

Last week, HSBC chief executive Michael Geoghegan told Sky News that bankers were beginning to leave London in response to the higher levels of taxation being imposed on staff working in the banking industry there.