HSBC to cut year-end bonuses for junior staff by 22.5 per cent as coronavirus pandemic weighs on performance

Name: No fireworks, few celebrations: 2021 New Year’s Eve in Hong Kong amid coronavirus pandemic
Uploaded: 2021-01-07T12:00:42.000Z
Duration: 3 min 5 s
Description: No fireworks, few celebrations: 2021 New Year’s Eve in Hong Kong amid coronavirus pandemic

HSBC’s profit in the first nine months of 2020 fell by 62 per cent as business activity weakened during pandemic

Total compensation for affected employees is mostly flat or slightly up year-on-year, HSBC spokeswoman said

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HSBC said it would cut year-end bonuses for junior staff after it navigated a difficult operating environment in 2020. Photo: Bloomberg

Chad Bray

Published: 8:00pm, 7 Jan 2021Updated: 9:08pm, 7 Jan 2021

HSBC plans to reduce bonuses for its junior staff globally by 22.5 per cent for 2020 as it navigates a difficult operating environment marked by the economic fallout of the coronavirus pandemic and historically low interest rates.

The largest of Hong Kong’s three currency-issuing lenders, HSBC will cut bonuses for its frontline and back office staff who are part of its streamlined variable pay programme in grades 6 to 8, according to an internal memorandum seen by the Post.

“The challenging external environment in 2020 has had a significant impact on business and group performance with reported profit in our Q3 YTD results down 62 per cent and adjusted profit down 44 per cent,” the memo said. “It is appropriate that we adjust the [streamlined variable pay] grid as a result.”

Variable pay was only reduced by 22.5 per cent to “reflect the exceptional performance of staff in supporting customers and each other and helping to build the bank for the future,” a spokeswoman said. Total compensation for affected employees is mostly flat or slightly up from the previous year as a result, she said.

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No fireworks, few celebrations: 2021 New Year’s Eve in Hong Kong amid coronavirus pandemic

Employees in the streamlined variable pay programme receive a discretionary bonus in February of the following year based on their performance and behaviour ratings, which is calculated using a formula. Most of its junior staff globally fall within the programme.