SYDNEY/HONG KONG: HSBC's headcount fell 3% last year and its staff bonus pool hardly changed as a new CEO sharpened focus on costs and initiated sweeping restructuring of the Asia-focused lender, showed its 2024 financial report issued on Wednesday.
The bank's bonus cash pool reached $3.80 billion in 2024 versus $3.77 billion a year earlier, the report showed.
HSBC posted annual profit that beat market estimates, helped by increased revenue in wealth and markets businesses. It also set stiff cost-cutting targets under CEO Georges Elhedery's push to boost returns with increasing attention on Asia where the London-headquartered bank earns the bulk of its profit.
Elhedery received 5.4 million pounds ($6.8 million) in total compensation for 2024, fattened by an annual incentive applied after Britain's removal of a cap on bonuses for top bankers.
The CEO could earn as much as 15.2 million pounds ($19.2 million) in the current year, with more than half comprised of the variable or bonus component, the report showed.
HSBC shareholders in 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.
Banks including Barclays, Goldman Sachs and JPMorgan have substantially raised caps on bonuses over the past year for their top UK-based bankers.
HSBC's report also showed its global workforce totalled 220,928 across its businesses versus 227,552 in 2023 and 232,642 in 2022. There was a 5.5% reduction in staff at its wealth and personal banking business.
The banks' salary and benefits bill reached $20.15 billion for 2024, up slightly from $19.62 billion one year earlier.
As part of the restructuring, the bank in October said it would combine some of its commercial and investment banking businesses and had installed a new leadership structure.
The bank cut 40 investment bankers in Hong Kong on Monday, Reuters reported on Tuesday. - Reuters
