HSBC Reports Workforce Reduction and Unchanged Bonus Pool in 2024
HSBC Holdings plc (HSBC) experienced a global headcount reduction of 3% in 2024, according to its recently released financial report. The staff bonus pool remained relatively unchanged, reaching $3.80 billion, a marginal increase from $3.77 billion the previous year.
Under the leadership of CEO Georges Elhedery, HSBC initiated cost-cutting initiatives and a comprehensive restructuring, particularly in its Asia-focused operations. These measures aim to enhance returns and prioritize the region where the bank generates the majority of its profits.
Elhedery received total compensation of 5.4 million pounds ($6.8 million) in 2024, including an annual incentive enabled by the UK's removal of bonus caps for top bankers. His potential earnings for the current year could reach 15.2 million pounds ($19.2 million), with a significant portion attributed to variable compensation.
HSBC's workforce reduction was most pronounced in its Wealth and Personal Banking division, where staff numbers declined by 5.5%. However, the bank's combined salary and benefits bill increased slightly to $20.15 billion in 2024 from $19.62 billion in 2023.
As part of its restructuring efforts, HSBC merged its commercial and investment banking divisions and introduced a revamped leadership structure. Additionally, 40 investment bankers in Hong Kong were let go in October 2024, indicating further cost-cutting measures.