Jamie Spencer
HSBC’s headcount fell by 3% in 2024 while its staff bonus pool remained largely unchanged, according to the bank’s financial report issued on Wednesday. The Asia-focused lender continues to focus on cost-cutting and restructuring under its new CEO.
Financial Highlights
The bank’s bonus pool reached $3.80 billion in 2024, a slight increase from $3.77 billion the previous year. HSBC reported annual profits that exceeded market expectations, driven by revenue growth in wealth and markets businesses.
CEO Compensation and Cost-Cutting Measures
CEO Georges Elhedery received a total compensation of £5.4 million ($6.8 million) for 2024, with his earnings boosted by an annual incentive following Britain’s removal of a cap on banker bonuses. His compensation for 2025 could reach as much as £15.2 million ($19.2 million), with more than half consisting of variable or bonus components.
HSBC shareholders previously approved lifting the cap on bonuses for top UK bankers, following a decision by Britain to remove a policy inherited from the European Union.
Workforce and Restructuring
The bank’s global workforce totaled 220,928 employees at the end of 2024, down from 227,552 in 2023 and 232,642 in 2022. The wealth and personal banking business experienced a 5.5% reduction in staff.
HSBC’s salary and benefits expenses increased slightly to $20.15 billion in 2024 from $19.62 billion a year earlier.
Operational Changes
As part of its restructuring efforts, HSBC announced in October that it would merge parts of its commercial and investment banking businesses and implement a new leadership structure. The bank recently cut 40 investment banking positions in Hong Kong.
HSBC’s cost-cutting measures align with industry-wide trends, as major banks such as Barclays, Goldman Sachs, and JPMorgan have also adjusted bonus structures and workforce allocations.
