HSBC reportedly overhauls senior staff pay, shifting more compensation into bonuses

The reported change comes after HSBC scaled back education benefits in Hong Kong earlier, as the bank continues a broader cost-reduction drive.

HSBC Holdings is reportedly set to overhaul its remuneration structure for senior employees, phasing out fixed-pay allowances and shifting a greater proportion of compensation towards performance-linked bonuses, according to Bloomberg.

According to the report, the London-headquartered bank will introduce the new pay structure from the beginning of 2028, bringing its senior staff compensation model closer to the bonus-heavy approach commonly adopted by Wall Street banks.

The reported change means a larger share of senior employees’ overall compensation will depend on performance-linked bonuses rather than fixed allowances, strengthening the link between pay and performance.

The move comes shortly after HSBC reportedly scaled back another longstanding employee benefit in Hong Kong, its largest market.

Earlier in September, the bank reportedly ended its education subsidy for new hires and senior employees relocating to Hong Kong.

The benefit had previously covered 95% of eligible school fees, capped at HK$220,000 per year for each child attending primary school and HK$300,000 for each child attending secondary school.

The reported changes form part of a broader cost-reduction effort as Chief Executive Georges Elhedery continues to restructure the bank.