HSBC’s headcount decreased by 3% last year as the new CEO focused on cost-cutting and implemented significant restructuring within the Asia-centric bank, according to its 2024 financial report released on Wednesday.
The bank’s bonus cash pool rose slightly to $3.80 billion in 2024, compared to $3.77 billion the previous year.
The bank reported an annual profit that surpassed market expectations, driven by increased revenue in its wealth and markets divisions. Under CEO Georges Elhedery’s leadership, HSBC set ambitious cost-cutting targets to enhance returns, particularly in Asia, where the bank generates the majority of its profits.
Elhedery received a total compensation of 5.4 million pounds ($6.8 million) for 2024, boosted by an annual incentive following the UK’s removal of a cap on bonuses for top bankers.
The CEO could potentially earn up to 15.2 million pounds ($19.2 million) this year, with more than half of that amount coming from the variable or bonus component.
In May, HSBC shareholders approved a resolution to lift the cap on bonuses for top UK bankers after the UK government eliminated a policy limiting payouts that originated from the European Union.
Other banks, including Barclays, Goldman Sachs, and JPMorgan, have significantly increased bonus caps for their top UK-based bankers over the past year.
HSBC’s report indicated that its global workforce totaled 220,928 across its various businesses, down from 227,552 in 2023 and 232,642 in 2022. The wealth and personal banking segment saw a 5.5% reduction in staff.
The bank’s salary and benefits expenses rose to $20.15 billion for 2024, a slight increase from $19.62 billion the previous year.
As part of its restructuring efforts, the bank announced in October that it would merge some of its commercial and investment banking divisions and establish a new leadership structure. Additionally, Reuters reported that HSBC cut 40 investment banking positions in Hong Kong on Monday.
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