HSBC moves to Wall Street bonus model, cuts fixed-pay deals
The overhaul is part of a broader restructuring since Georges Elhedery took over as CEO
HSBC is transitioning to a Wall Street-style bonus model for senior staff, replacing fixed-pay allowances, according to a memo seen by Bloomberg News. The restructuring, initiated by CEO Georges Elhedery in September 2024, aims to better align compensation with performance, attract top talent, and differentiate pay across the bank's workforce.
The shift to bonuses, which will start in early 2028, represents a significant change for the London-based bank, which previously relied on fixed-pay allowances to supplement base salaries, particularly since EU rules capped finance sector compensation. HSBC spent $3.93 billion on variable pay in 2025, a 10% increase from the prior year, and gross compensation and benefits totaled $21.5 billion last year.
This shift follows Barclays' move to increase variable pay after UK compensation rules changed in 2023. HSBC's decision comes amid a broader restructuring, including business sales, job cuts, and the elimination of certain employee benefits, such as education allowances and private club memberships in Hong Kong.
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