The HSBC 'clawback' fiasco
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Why you should care about the HSBC ‘clawback’ nightmare
On Friday, 3 May, HSBC will hold its annual general meeting for shareholders in London. For the sixth year in a row, its bosses will hear from former employees who are angry that the company is clawing back part of their pensions.
There are 51,000 people affected by the HSBC clawback. Many of them worked in local branches of Midland Bank, which HSBC acquired in 1992.
They accepted lower wages because the pension plan was “gold-plated” — it paid a fixed sum forever, based on their salary. It was only in the last few years that they realised HSBC would reduce their pensions if they also received a state pension from the government.
The clawbacks were wildly disproportionate, according to evidence submitted to Par…