Key facts
- HSBC Holdings Plc will phase out fixed-pay allowances for senior staff.
- The new pay system will be implemented at the start of 2028.
- The shift aims to strengthen the ability to pay for performance and attract top talent.
HSBC Holdings Plc is set to phase out fixed-pay allowances for its senior staff, adopting a compensation model that emphasizes bonuses over fixed payments. The change, which will take effect at the start of 2028, aligns HSBC with a Wall Street-style remuneration approach aimed at better rewarding performance and attracting top talent.
A memo seen by Bloomberg News detailed the shift, with a spokesman for HSBC stating that the new approach "strengthens our ability to pay for performance, better differentiate, attract the best talent, and recognise" top performers. This move by HSBC follows a similar adjustment made by Barclays.