HSBC and Lloyds Banking Group are fighting a rearguard action with shareholders over executive pay in the middle of their full-year reporting season. HSBC is set to introduce new proposals following a hostile reaction to chief executive Michael Geoghagen's proposed 40% pay hike while Lloyds Banking Group is fighting for higher bonuses for its chief Eric Daniels.

At Lloyds, the latest argument relates to chairman Sir Win Bischoff's decision to tell shareholders he wanted to raise Daniels' long-term incentive plan from 200% to 275% of salary, following his agreement to forgo £2.3m (€2.6m) for 2009.