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HSBC Boosts CEO Gulliver’s Pay as Bank’s Bonus Pool Drops 12%

HSBC Holdings Plc boosted Stuart Gulliver’s total potential pay to 9.7 million pounds ($12 million) as the chief executive officer was rewarded for cutting costs, while the bank’s bonus pool dropped.

Gulliver, 57, saw his annual incentive pay for 2016 raised to 1.7 million pounds from 1.1 million pounds a year earlier as he hit targets for paring expenses and assets, even as he fell short of a profit goal, the bank said in its annual report Tuesday. He received 64 percent of his potential bonus, while he will also get a new long-term incentive that could be worth 4 million pounds for 2016 if all targets are met by 2019.

HSBC cut its total annual bonus pool 12 percent to $3.04 billion, as revenue fell for a fifth consecutive year. Gulliver has stepped up efforts to slash expenses and return capital to shareholders as the bank faces hits to revenue this year from unfavorable currency moves and record-low U.K. interest rates.

The bank’s remuneration committee said it reduced Gulliver’s annual bonus by 2.5 percent, as well as the pay of other executives, because of issues tied to standards, risk and compliance. This was based on feedback received from a monitor installed by U.S. Department of Justice, as well “matters arising from risk and compliance incidents, and a number of unsatisfactory internal audits” related to anti-money laundering and sanctions-related issues, the company said.