HSBC to replace fixed salaries with performance bonuses by 2028

HSBC plans to overhaul its remuneration structure by eliminating fixed-pay allowances for senior personnel and moving to a Wall Street-style bonus system, effective at the start of 2028. The shift is intended to better align pay with performance, attract talent and reward top achievers, according to a bank spokesperson. The move mirrors Barclays' recent adjustment after UK regulatory changes permitted higher variable compensation.

Fixed allowances, introduced over a decade ago and capped at 150% of base salary, have been a major part of senior staff pay. In 2025, HSBC's variable pay rose to US$3.93 billion, up 10% from the previous year, while total compensation and benefits reached US$21.5 billion. The overhaul is part of a broader restructuring under CEO Georges Elhedery, who has also cut other benefits such as education subsidies and private club allowances in Hong Kong.