British banking giant HSBC fired a group of investment bankers on the day they were set to learn the size of their bonuses — and denied giving them their annual payout, according to a report.
The London-headquartered lender axed financiers in London and Hong Kong last month after announcing it would focus its M&A and capital markets work in Asia and the Middle East, the Financial Times reported.
However, ruthless bosses told the canned bankers that they would be booted without their 2024 windfall, sources told the FT.
HSBC insiders said that they expected some job losses this year, but that the fired workers — who were at vice president or above — were expecting to get some of their bonus, considering it’s tied to their performance over the past year, FT reported.
“It’s very unlike HSBC,” one of those affected told the Trump-bashing British financial newspaper, saying the bank had “a reputation for looking after (its) people.”
There were no details on how many bankers were let go.
A HSBC spokesperson declined to comment.
“A good employer will pay the bonus pro-rata for the amount of time worked during the year, but some don’t,” Tanvir Rahman, an attorney for law firm Filippatos, told The Post.
HSBC ‘s bitter British rival Barclays made a similar move to avoid handing out huge payouts, as The Post previously reported.
HSBC’s bonus cash pool reached $3.8 billion in 2024, compared with $3.77 billion a year earlier, according to regulatory filings.
HSBC shareholders last May backed a resolution to lift a cap on bonuses for its top UK bankers after Britain axed a policy limiting payouts inherited from the European Union, a move that was only possible after Brexit.
Investment banking is a small part of HSBC’s business model, which is dominated by its commercial and retail activities.
Lebanese-born CEO Georges Elhedery, who raked in $6.8 million last year, is undertaking a major cost-cutting plan across HSBC that aims to make $1.5 billion in annual savings by the end of 2026.
He could earn as much as $19.2 million in the current year if he can boost HSBC’s share price by 50%, according to the bank’s latest financial report, as he moves to simplify its global operations.
The Goldman Sachs alum’s strategy is also focused on boosting returns by increasing attention on Asia, where the bank earns the bulk of its profit.
Elhedery’s potentially eye-popping pay packet would mean that he would make much more than his predecessor Noel Quinn, who picked up $13.8 million in 2023 during his final full year at the helm.
Credit: Source link
