HSBC Holdings Plc is reviewing a long-standing perk that covers school fees for bankers in Hong Kong. This review is part of a broader initiative to standardize benefits globally and reduce costs. The London-headquartered bank is considering options such as eliminating the perk for new hires or adjusting their total compensation.
Currently, eligible mid-level and senior staff in Hong Kong receive a subsidy covering 95% of school fees, up to HK$220,000 (approximately $28,000) annually for primary school children and up to HK$300,000 (approximately $38,000 to $48,000) for secondary school children. This benefit, which costs the bank tens of millions of dollars annually, is unique to Hong Kong, HSBC's largest market, and is not offered in other major financial centers, including to staff at Hang Seng Bank, which HSBC fully acquired.
The review is part of a significant overhaul under CEO Georges Elhedery, which includes thousands of job cuts and streamlining management layers. HSBC aims to achieve $1.5 billion in cost savings ahead of schedule and has increased its return on tangible equity targets to 17% or higher for 2026 and the following two years. While HSBC's salaries and bonuses may lag Wall Street rivals, it historically offered generous benefits like club memberships and cheap mortgages to attract talent.
