The chairman of HSBC was yesterday met with cries of ‘shame’ by furious former employees who said the bank was unfairly clawing back some of their pensions.
Mark Tucker faced boos and repeated interruptions from activists at the bank’s annual general meeting in London.
The long struggle of thousands of former employees, most of whom had joined the Midland Bank before it was taken over by HSBC, was likened by one to the Post Office scandal.
The campaigners point out that while the bank refuses to pander to the hardships of retirees, it is rewarding bosses with huge pay rises and preparing to lift a cap on bonuses for executive workers.
The furore comes as Tucker faces a series of major challenges, including the search for a third CEO in less than eight years after Noel Quinn announced his retirement.
Jeers: The struggle of thousands of former employees, most of whom had joined Midland Bank before it was taken over by HSBC, was likened by one to the Post Office scandal
The General Assembly descended into acrimony as members of the Midland Clawback Campaign, many wearing red T-shirts with the slogan ‘HSBC – hands off our pensions’, made their voices heard.
They are calling for an end to the practice of some members of the bank’s final salary scheme having money cut from their private pension benefits when they start receiving the state pension. At the same time, they point out that Quinn’s wages have almost doubled to £10.6m. Part of this is a cash payment of £134,000 to replace a pension.
The ‘clawback’ affects 52,000 people who joined the Midland scheme between 1975 and 1996, when it closed.
Nancy Ball, leader of the Midland Clawback Campaign, said some former employees saw their pensions cut by around a quarter as a result of the clawback. She told the board: “I was one of the top performers – I thought you had my back, but oh no, you didn’t. Shame on you all.”
Tucker said it was an “important and emotional topic” but that the issue had been discussed many times and the deduction had been “legally and properly communicated to members” – before being roundly harassed and ridiculed.
The campaigners lost a vote at the AGM aimed at changing the practice. Val Twigg, 62, who worked at the bank for more than 46 years, drew a parallel with postmasters who were wrongly hounded by the post office to recover money they claimed to have embezzled.