While most bankers are already enjoying or expecting higher bonuses in the European banking industry, HSBC has told its employees to keep their expectations low. The financial institution is preparing to reduce costs and is already in the process of restructuring as a part of these efforts.
While the incentives to be given have not been finalised yet, it is reported that the payouts are going to be below expectation. The payouts will also vary as per the performance throughout the year. The bank intends to be fair in terms of rewarding its employees across its global offices.
Not long ago, HSBC had indicated that the bonus payouts would be more or less similar to what was paid in 2023. However, the financial institution has been undergoing a makeover of sorts under Georges Elhedery, CEO, HSBC, to give it an edge over competition and ensure growth. As part of the revamp the commercial and the investment banking divisions have been merged outside Hong Kong. This has reduced the number of senior managers.
Exactly how much will be spent in restructuring and how much saved will be revealed in the bank’s report which will be presented in February, 2025.
In June last year, HSBC had grabbed headlines for all the wrong reasons when a former employee working as a CDD analyst, at the HSBC Global Service Centre in Hyderabad, made several shocking revelations about the work culture. The bank also witnessed many senior exits.
