LONDON, Feb 21 (Reuters) – HSBC cut its annual bonus pool by 4% to $3.4 billion in 2022, the bank said on Tuesday, as a global slump in dealmaking led it to trim awards for its bankers.
Despite the overall bonus cuts for staff, Chief Executive Noel Quinn saw his pay package jump 14% to 5.6 million pounds ($6.7 million), from 4.9 million pounds the prior year.
Once long-term incentive awards are included, Quinn’s total pay could reach 10.5 million pounds, the bank said.
HSBC reported a strong fourth quarter profit to end 2022 but a cautious outlook left some investors pondering whether the boost to earnings from higher central bank rates may already have peaked.
The bank’s bonus pool for staff was slightly smaller than the $3.5 billion paid last year.
HSBC said it prioritised increasing payouts for high performers in its commercial bank and for more junior staff across the bank, whereas bonuses fell in its global banking and markets arm after a torrid year for deals.
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Some British banks are continuing to pay handsome bonuses while millions of people are being squeezed by rising mortgage rates, the lingering energy crisis and inflation pushing up the cost of everyday goods.
Rival NatWest raised its bonus pool by nearly a quarter to 368 million pounds in earnings last week, and almost doubled CEO Alison Rose’s pay package to 5.2 million pounds.
($1 = 0.8313 pounds)
Reporting by Lawrence White; additional reporting by Iain Withers; editing by Sinead Cruise
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