HSBC issued no bonuses to axed investment bankers, despite letting them go on the day they were set to learn their pay award figures.
The FTSE giant told staff in its investment arm last month that they were facing the chop after the firm announced in January it would wind down mergers and acquisitions advisory work.
Sources told City AM last month ahead of bonus day there was an expectation “that some will get a bonus and others will go”.
Investment bankers at vice-president level and above received no bonus following termination, as reported by the Financial Times.
“It’s very unlike HSBC,” sources told the FT, with others adding the bank had “a reputation for looking after [its] people”.
The bank declined to comment on either story.
The retreat in investment banking followed new boss George Elhedery pledging to slash costs across the group.
In its annual results the lender committed to £1.2bn worth of cost cuts by the end of 2026.
The Big Four bank booked a record £25.6bn in pre-tax profit for 2024, with Elhedery in line for an increased pay package worth over £15m, according to Sky News’ Mark Kleinman.
Elhedery’s fresh pay package significantly trumps his predecessor Noel Quinn, who received £10.6m in his last full year at the bank.
The new chief executive’s overhaul of the bank included merging two of HSBC’s three main units, reducing the number of senior bankers and dividing operations into eastern and western markets.
HSBC’s investment banking division has been a global target for Elhedery’s cost reductions, with a series of layoffs having taken place in Hong Kong.
Commercial and retail operations make up a significantly larger share of HSBC’s business than investment banking, with its small share significantly reduced in the last few months.
