Could HSBC trustees stage a revolt?

It wants pension fund trustees to vote against the pay policy at the HSBC bank because, under current rules, the TUC says one of the bank's board directors could make �20m if he is dismissed.

However, HSBC has dismissed the criticism, saying the pay package for director William Aldinger represented good value for money.

This latest attack follows last week's shock when the board of pharmaceutical giant GlaxoSmithKline was defeated in a vote on directors' pay.

The TUC joined leading investors in calling on shareholders to reject a salary scheme that included a multi-million pound "golden parachute" package for its chief executive Jean-Pierre Garnier.

The issue dominated Britain's Sunday newspapers. According to the Independent on Sunday, the TUC is planning to join forces with union groups across Europe to put concerted pressure on multinationals.

The paper also names 17 other British companies who, it says, could be "rewarding their bosses for failure" with fat golden parachutes, including banks Schroders and Barclays, supermarket Tesco, and engineering group Tomkins.

The Observer, meanwhile, said GSK shareholders would mount a fresh assault by calling for an extraordinary general meeting if Mr Garnier's pay was not reduced - and demanding the resignation of board members who backed it.

But according to the Sunday Times, Trade and Industry Secretary Patricia Hewitt has backed off from the prospect of legislation, saying that a few rotten apples were "feeding prejudice against all business people".

'Platinum parachutes'

As with GlaxoSmithKline, the issue at HSBC is that of potential rewards for failure.

Our pension funds and insurance policies should be invested in a way that supports good businesses Brendan Barber, TUC

Mr Aldinger, who joined the bank's board after the takeover of the US lending company he ran, stands to make millions in the event of his contract being terminated.

The director, who works in Chicago, would also receive free dental and medical treatment for life.

The TUC general secretary elect Brendan Barber urged HSBC shareholders to vote against the package at the bank's annual meeting next Friday.

He said pension funds should be invested in a way that supported good businesses and not in "platinum parachutes" for failing directors.

Mr Barber told the BBC: "There are lots of people of talent who would relish the challenge of leading and running major companies in our country.

Barber: 'We don't need talent from abroad'

"We simply don't need to offer these vast rewards to import talent from abroad."

Mr Aldinger, 55, joined HSBC's board on a �37m three-year package that is made up of a salary and share options.

Mr Barber said the vote at GlaxoSmithKline was significant, but it was concerned that some fund managers abstained and one voted in favour of the pay package.

Mr Barber said: "It may seem like the tide has turned against rewarding failure in Britain's boardrooms.

"But the large number of abstentions in last week's GlaxoSmithKline pay vote show that some big investors are still reluctant to take a firm line on greed."

It was essential that HSBC shareholders kept up the pressure by voting against the executive pay deal, Mr Barber added.

'Huge salary'

"This is our money. Our pension funds and insurance policies should be invested in a way that supports good businesses not platinum parachutes for failing directors."

Mr Barber said that for far too long major shareholders had sat back and allowed boards to get away with almost anything.

HSBC spokesman Adrian Russell admitted Mr Aldinger's pay package is "indeed huge", but added that it was in line with what executives received in the US.

He said Mr Aldinger joined HSBC when the bank bought Household International for $14bn in April this year.

"We wanted to keep him running that company for at least a few years to help integrate it into HSBC. This is a very talented man," said Mr Russell.