Ovation as HSBC's veteran chief moves on

HSBC chairman John Bond’s distinguished 45-year career with the company ended today with a standing ovation at the annual general meeting.

Shareholders at the Barbican, London, were keen to pay tribute to the man who joined the firm as a 20-year-old trainee in Hong Kong and who went on to make it the global banking powerhouse it is today.

However, some were angry at the “obscene” pay rises Bond and other executives have received over the past six years.

Bond, who becomes chairman of telecoms group Vodafone in July, passed on his HSBC mantle to current chief executive, Stephen Green, who he said would more than fill his shoes – carrying on the company’s tradition of promoting company insiders.

Among the many tributes was one from a shareholder who had travelled from Malaysia for the occasion.

Praising Bond for his loyalty, he said, under his leadership, HSBC had become “one of the best companies in the world”.

Another said Bond was “a caring man who happens to be our chairman” and many investors thanked the 64-year-old father of three for his “outstanding service”.

One said: “Your loyalty is not common practice in many industries. You are a rare breed indeed.”

However, it was not all praise for the members of the board.

Many shareholders remain angry at executive pay rises.

One pointed out that Sir John’s pay had increased by 597% over the past six years and his pension had risen by 450%. This compared to a 37% increase in return for shareholders and a rate of inflation rise of 16% over the same period, he said.

Bond received £4.5m (€6.56m) in total remuneration last year – £1.3m (€1.9m) in salary and £3.2m (€4.6m) in bonuses. He will receive an annual pension of £546,000 (€796,000).

Bond said HSBC was highly sensitive to the issue of pay but had to remain competitive to retain good staff.

We have to pay market rates to retain the team who have delivered a reasonable performance for you,” he said.

Some shareholders defended the pay rises and said executives got “what they were worth”.

Over the past 12 years, Bond has overseen more than 50 acquisitions worth more than $50bn (€39bn), including deals in France, the US, Malta, Mexico and Bermuda.

HSBC has also expanded into mainland China with a 19.9% stake in the Bank of Communications – the country’s fifth largest bank – and another 19.9% in Ping An insurance.

The company was quoted on the New York Stock Exchange on Bond’s watch, in addition to its listings in London and Hong Kong.

Bond was knighted for his services to banking in the Queen’s birthday honours in 1999.