HSBC to issue shares to pay UK bonuses: Source

HSBC Holdings is to issue shares to pay the cash element of bonuses for its UK bankers in response to regulatory pressure to preserve capital, a person familiar with the matter said on Tuesday.

London: HSBC Holdings is to issue shares to pay the cash element of bonuses for its UK bankers in response to regulatory pressure to preserve capital, a person familiar with the matter said on Tuesday.

HSBC's change to its structure means it will issue tens of millions of pounds of new shares to cover any non-deferred cash bonus of more than 50,000 pounds for UK-based staff, the person said.

Although the move means the bank will not erode capital by paying bonuses, the issuance of shares means it will be dilutive for other shareholders.

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