HSBC is to hand chief executive Michael Geoghegan an additional £800,000 a year for his move from London to Hong Kong.
The bank boss will receive £300,000 in allowances on top of his salary for “family disruption” over the move, which does not include living expenses.
Geoghegan will also receive a further estimated £500,000 for living expenses, including travel, housing and education costs, all of which are defined as “benefits in kind”.
A spokesperson from HSBC said: “Allowances of this nature are typical when executives relocate overseas. The company is compensating Mr Geoghegan and his family directly for moving to Hong Kong from the UK.”
HSBC intends to award Geoghegan a pay increase next year, despite coming under recent pressure from shareholders who blocked this year’s intended 36 per cent hike.
The banks annual report said: “The non-executive directors have agreed that his remuneration, including salary, will be brought up to internationally competitive levels within the next 12 months.”
Earlier this week Geoghegan confirmed that he will waive his £4m bonus after deciding to instead hand it to charity over the next three years.