Dismissed HSBC executives had received $40m in bonuses
February 23, 2007 (Times Online)

Two senior HSBC bankers who were dismissed yesterday for their connection to the bank’s catastrophic foray into high-risk US mortgages had been paid $40 million (£20 million) in performance-related bonuses. In a revelation likely to spark shareholder concern over rewards for failure, the two are also set to receive at least $2 million more in compensation for loss of office.

Yesterday HSBC ousted Bobby Mehta, the chief executive of HSBC North America, and Sandy Derickson, the chief executive of HSBC Bank USA. The departures come only two weeks after HSBC was forced to issue the first profit warning in its 142-year history because of a sudden $1.8 billion blowout in sour loans to Americans with poor credit records. Mr Mehta ran the whole of HSBC in North America and was one of the eight most senior executives at HSBC, sitting on the group management board.

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