As per the financial statements released by HSBC, the overall bonus pool stands at $3.5 billion, which is a 31 per cent increase compared to 2021.
The employees at HSBC have seen a healthy increase in their compensation in terms of bonuses paid. The Bank increased bonuses of top investment bankers by 53 per cent. It paid $410.6 million to 507 top bankers, that is, senior employees whose actions impact the risk profile of the Bbank. Last year, that is, 2021, $269.2 million was paid out by the Bank to these employees.
The statement reveals that the Bank’s compensation variables were up all across business lines. While all senior employees saw heavy bonuses this year, the junior bankers at the Bank saw a slight increase in their compensation. According to media reports, at the entry level, analysts saw an increase in their compensation from $80,000 to $100,000 as compared to last year.
Even Noel Quinn, CEO, HSBC, received a bonus of $5.7m last year, which was up by 27 per cent, pushing his overall pay packet to $12.4m for 2021.
Other rival banks such as Goldman Sachs and JP Morgan also increased the bonuses of their bankers by 50 per cent last year.
As per the senior leadership team at the Bank, HSBC has seen a remarkable rebound from the crisis of COVID-19 in the year 2020. As the Bank has performed well, HSBC decided to reward all its top performers handsomely to retain them in a competitive talent market.