HSBC as Exemplar for Other Banks

CEO's golden parachutes and Bank's payment packages are constantly swirled around in the media mix. Individuals, who never before considered bonus structures and compensation packages from a Human Resources perspective during the previous decade in "the War for Talent, suddenly are well-versed in solutions.

Greed and corruption are usually attributed to those in the C-suite and any employees of banks. With those traits in most people's minds I provide the statements of Stephen Green, the chairman of HSBC (the world's second largest bank).

Green said in the September interview with BBC, "I think it is important and will become much more the focus of attention to ensure that remuneration schemes operate in a way that is lined up with the long term interests of the owners of the business. There has been far too much focus on payments that are very short term focused, people who pick up the tab for short term profits, without having to bear the costs of long term impairments."

With thoughtful comments such as these is it any wonder that HSBC is in a stable enough position that it can grow its UK mortgage portfolio! This may be a good company to keep an eye on for when/how other companies will rebound from the economic crisis. HSBC was the first bank to warn and take action toward sub-prime mortgages in the US. Even with this preemptive action in comparison to other banks, analysts do not look for a rebound until 2011. This does not bode well for other banks that were slower in honest reaction. Look to HSBC as it has served as an exemplar in reaction to the sub-prime crisis, and it seems it will be for banker reform -both playing a role in revitalizing the economy of the future.