HSBC, Britain's biggest bank, is speculated to scrap a pay hike of almost 40% for its chief executive Michael Geoghegan after shareholder protests.

HSBC has delivered positive results and has not opted for Government bail-out money, unlike Royal Bank of Scotland and Lloyds Banking Group.

The board is reported to herald the final decision on Friday, before HSBC publishes 2009 results on Monday, according to press reports.

HSBC had conveyed to its investors that it wanted to shift the balance of variable performance-related pay towards a higher fixed element. This would land Mr. Geoghegan's pay to nearly £1.5m and that of Douglas Flint, finance director, from £700,000 to close to £900,000.

Also, it is revealed that the bank will give in to shareholder pressure and abandon the planned 36% hike in the basic pay of Geoghegan and other top executives.

Shareholders cite that instead of the emerging frenzy over bonuses that has prompted senior executives at Barclays, RBS and Lloyds to shut down the bonuses for 2009, they are just as concerned by proposed changes to the shape of executives' total pay structures.

Geoghegan, who is based in Hong Kong, could also come under pressure to waive his bonus following similar moves by executives at other major banks.