HSBC shifts senior staff compensation to bonuses

HSBC will phase out fixed-pay allowances for its senior staff and distribute a larger portion of compensation as bonuses. The bank is adopting a Wall Street-style pay model to better align compensation with individual performance, according to an internal memo reviewed by Bloomberg News.

The change follows the British government's decision to scrap post-financial crisis bonus restrictions. Following the end of European Union bonus limits after Brexit, UK lenders have gradually dismantled the fixed-pay workarounds created to navigate the older rules.

HSBC becomes the latest UK lender to adjust its compensation framework, following similar moves by Barclays. Industry observers expect the shift toward traditional performance incentives to improve the competitiveness of the City of London in attracting financial talent.