HSBC cancels pay freeze
Bank chief executive says global economic conditions remain exceptionally poor but he will look for cost savings elsewhere
HSBC chief executive Stuart Gulliver has cancelled a global pay freeze at the bank announced on January 29, according to an internal email sent to all staff on Thursday morning London time which has been forwarded to the South China Morning Post.
But he made clear pay rises would be subject to individual staff’s performance reviews, and would be funded out of the bonus pool due to be paid out in March 2017. The bonus pool for last year, due to be paid out next month, would not be affected.
A hiring freeze in place since the fourth quarter of 2015 would stay in place until further notice.
“I have received very clear feedback on this decision, which has focused on both the decision itself together with the manner in which it was communicated,” Gulliver said of the pay freeze in the email. “I have listened to this feedback and have as a result decided to change the way these cost savings are to be achieved.”
He reminded staff that global economic conditions remained exceptionally poor, while saying the staff bonus pool would be determined by their collective achievements.
“Several of our competitors have recently announced large-scale redundancies, salary freezes, bonus reductions and further cost reduction programmes in addition to those already in place and, hence it is clear we are not alone in facing these challenges,” he said.