Geoghegan stands to pocket $38 mil
(24 September 2010 – UK) Former HSBC chief executive Michael Geoghegan could eventually end up with a A$38 million payout after being pushed out of the banking giant.
The March 2011 departure of Mr Geoghegan's departure was formally announced late on Friday after a week of media leaks and speculation over boardroom power-struggles.
It was reported that Mr Geoghegan threatened to resign unless he was promoted to chairman, after Stephen Green's decision to leave the bank for a position in the coalition Government as Trade minister.
However the bank confirmed the position was going to Douglas Flint, who joined HSBC in 1995, while Stuart Gulliver, head of the group's investment banking operation, would take the chief executive role when Mr Geoghegan leaves in late December.
Mr Geoghegan, who will remain in an advisory capacity until March, stands to receive up to A$38 million after leaving the company, according to the Sunday Times newspaper.
He will receive A$2.3 million as he is leaving early and will be eligible for a A$6.9 million bonus for 2010. In addition, he owns A$10.2 million worth of shares, and long-term incentives could deliver another A$18.3 million, the paper said.
A spokesman for HSBC said the A$2.3 million was the only payout for leaving the company, and to call any further remuneration a ‘farewell package’ would be inaccurate.
Speaking on Friday, Mr Geoghegan said all discussions had been ‘calm’ and speculation over a boardroom bust-up was all ‘nonsense’.
When asked if he wanted to be chairman, Mr Geoghegan replied that he never went out of his way to be chairman. It's been historical at this company that the chief executive goes on to be chairman but you have to be asked and the reality was I wasn't asked. Another person was asked, it was obvious it was going to be Mr Douglas.
Mr Geoghegan said it was Mr Green's decision to leave that ‘triggered’ his own thinking
It was reported that Mr Geoghegan threatened to resign unless he was promoted to chairman, after Stephen Green's decision to leave the bank for a position in the coalition Government as Trade minister.
However the bank confirmed the position was going to Douglas Flint, who joined HSBC in 1995, while Stuart Gulliver, head of the group's investment banking operation, would take the chief executive role when Mr Geoghegan leaves in late December.
Mr Geoghegan, who will remain in an advisory capacity until March, stands to receive up to A$38 million after leaving the company, according to the Sunday Times newspaper.
He will receive A$2.3 million as he is leaving early and will be eligible for a A$6.9 million bonus for 2010. In addition, he owns A$10.2 million worth of shares, and long-term incentives could deliver another A$18.3 million, the paper said.
A spokesman for HSBC said the A$2.3 million was the only payout for leaving the company, and to call any further remuneration a ‘farewell package’ would be inaccurate.
Speaking on Friday, Mr Geoghegan said all discussions had been ‘calm’ and speculation over a boardroom bust-up was all ‘nonsense’.
When asked if he wanted to be chairman, Mr Geoghegan replied that he never went out of his way to be chairman. It's been historical at this company that the chief executive goes on to be chairman but you have to be asked and the reality was I wasn't asked. Another person was asked, it was obvious it was going to be Mr Douglas.
Mr Geoghegan said it was Mr Green's decision to leave that ‘triggered’ his own thinking
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