HSBC confirms policy change for top level executive pensions

High street bank HSBC has confirmed it will change its pension policies to bring them "in line" with other major lenders, following complaints from its biggest investors.

The company currently pays its chief executive, chairman and two executive directors 50% of their base salaries in cash, in lieu of a pension.

This is significantly above that paid at sector peers Lloyds and Barclays, which make pension contribution of around 25-30% of the basic salary of equivalent level management.

HSBC told the Sunday Times that it would "bring our policy in line with other top FTSE companies from January 1".

One of the lender's top 10 investors told the publication: "HSBC's pensions have remained stubbornly high since the crisis.

"They are definitely out of line with the rest of the market.

"We have no issue with contribution levels for more junior staff, but the executive payments have to come down."

Junior HSBC staff are offered pension contributions of 24% of their salary.