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Executive President Standard Chartered, Bill Winters, said that an EU limit in the bankers had created bad incentives, since the lender in London headquarters used the abolition of the United Kingdom measure to reduce their salary in a 40 percent in favor of increasing your possible bonus.
“The effect of [bonus cap] Did everyone get a grotesque increase in the fixed salary, ”he said in a call with journalists on Friday? “I say grotesque because it was exactly the incorrect incentive. . . Clip coupons and not do a very good job. “
Winters, with much, the CEO of a bank from the United Kingdom, will win this year of £ 13.1 million, more than double what he won in 2022, if he were going to meet all the objectives, but his basic salary would fall. “I will have to explain to my mother why my salary has been cut in half,” Winters joked on the call.
“My motivation at Standard Chartered has never been about payment,” he said. Instead, he said, it was about being “part of a fantastic franchise.”
The 2024 Winters payment package of £ 10.7MN was almost 50 percent higher than the previous year due to the payments of an incentive plan.
The salary of the financial director Diego de Giorgi will be reduced by 33 percent under the new model, with its total package of up to £ 7.7mn if the objectives are met. He made £ 2.8mn in 2024.
Stagnation The review said, which announced together with the annual results on Friday, “it represents the most significant change for many years” in the way in which superior staff is paid.
Barclays and HSBC have Taken similar steps For a lower fixed salary for higher executives and increase performance -related bonuses.
The United Kingdom announced plans to abolish the limit in 2023, part of a Plan after Brexit to boost the city of London. The EU had introduced the limit as an attempt to stop the risks following the financial crisis of 2008.
Stanchart’s tax earnings fell 30 percent in the last three months of last year amid increasing costs, even when their wealth and market companies generated higher income.
The bank reported legal gains before $ 800mn taxes for the fourth quarter, below $ 1.1 billion of the previous year and the estimates of missing analysts of $ 983mn. His underlying profits before taxes, adjusted to take into account restructuring and other costs, were $ 1 billion, in line with analysts’ estimates.
Winters said the results for the whole year, in which the profits reported before taxes increased by 19 percent to $ 6 billion, were “strong.”
“Our strategy. . . He is shooting all the cylinders, ”said Winters, who has directed the bank since 2015. Stanchart said in October that he would do it double investment In its heritage management business and moves its focus of smaller national clients towards global institutions.
The Bank announced a repurchase of shares of $ 1.5 billion and said it planned to return at least $ 8 billion to shareholders accumulatively from 2024 to 2026.
Net interest revenues for the year were $ 10.4 billion, exceeding the target of the bank of $ 10.25 billion, even when a period of growing rates has come to an end.
Stanchart received restructuring charges of $ 441 million for the year, including $ 156mn for its cost savings program, known as “suitable for growth.” The bank said last year that it planned to save around $ 1.5 billion for a period of three years by simplifying the systems.
Its wealth business, a key approach to the bank, reported a 36 percent increase in revenues for the quarter, while those of its market unit increased by 47 percent as revenue increased by trade.
The underlying performance of the bank on tangible capital, a profitability measure, was 11.7 percent for the year, compared to 10.1 percent of the previous year. Raised its 2026 objective of 12 percent to “approaching 13 percent.”
Stanchart’s actions have now exceeded the level at which they were when Winters took the helm, having increased more than 80 percent since he regretted its “garbage” price a year ago.
However, the action still quotes with a discount to the book value of bank assets. Their actions mentioned by Hong Kong increased 1 percent on Friday before profits decrease 0.4 percent.
This month, he called Maria Ramos, current member of the Stanchart Board and former executive director of the South Africa Abrica Bank, as its next president.
In 2019, Winters attacked “immature” investors who organized a protest for their salary.