HSBC cut its annual bonus pool by 4 per cent to $3.4-billion in 2022, the bank said on Tuesday, as a global slump in deal making 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 per cent to £5.6-million ($6.7-million), from £4.9-million the prior year.
Once long-term incentive awards are included, Quinn’s total pay could reach £10.5-million, the bank said.
Quinn told reporters the board set his pay and that the bank’s overall performance was strong, adding that executive bonuses and staff awards would go “in swings and roundabouts.”
HSBC HSBC-N reported a leap in 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 prioritized 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.
British banks have faced criticism for continuing to pay substantial 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.
“Rather than imposing more costs on ordinary households, the government should tax the windfall profits of banks,” said Fran Boait, executive director at Positive Money, which campaigns for a fair financial system.
HSBC’s rival NatWest raised its bonus pool by nearly a quarter to £368-million in earnings last week, and bumped up CEO Alison Rose’s pay package to £5.2-million.
Barclays meanwhile trimmed its bonus pool slightly, but still paid out £1.8-billion in bonuses.