HSBC embraces bigger bonuses as bankers pushed to take more risks

What happened: HSBC is increasing bonuses for its bankers, replacing fixed-pay allowances, to support what it calls a high-performance culture. The change takes effect from the start of 2028. Key numbers: Bonus pay was previously capped at 200pc of fixed salary under an EU-era rule. The UK dropped the cap in 2023 and cut the bonus deferral period from eight years to four. Why it matters: HSBC follows Barclays in shifting pay toward bonuses after the UK removed the cap, a change regulators said would boost competitiveness and align London closer to Wall Street. Market: +1.4% by next close ($150.10 on Oct 13), +22.3% YTD

HSBC is increasing bonuses for its bankers, replacing fixed-pay allowances, to support what it calls a high-performance culture. The change takes effect from the start of 2028.

HSBC follows Barclays in shifting pay toward bonuses after the UK removed the cap, a change regulators said would boost competitiveness and align London closer to Wall Street. Market: +1.4% by next close ($150.10 on Oct 13), +22.3% YTD