HSBC scraps education subsidies for newly promoted senior executives in Hong Kong

HSBC has terminated education subsidies for new and newly promoted senior executives, worth up to HK$300,000 annually, while existing top-tier staff retain the benefit, a move that coincides with job-cut fears stemming from the bank's integration with Hang Seng Bank.

Benefit cut takes effect from Friday

The biggest lender in Hong Kong will scrap the education subsidy programme for all newly hired or newly promoted senior executives from Friday, according to an internal memo seen by the South China Morning Post. The decision creates a two-tier system among the bank's leadership ranks.

Employees who were already in the bank's top three grades as of Thursday, including managing directors and department heads, will continue to enjoy the benefit. The subsidy provides up to HK$300,000 (US$38,240) for secondary school fees and HK$220,000 for primary school fees per year.

Cost-cutting and integration fears

Senior bankers at HSBC are facing a double blow of losing the key employment benefit while also confronting potential job losses, according to sources. The lender is carrying out a range of measures to cut costs and achieve fair treatment for all staff. The integration with Hang Seng Bank threatens jobs, though investors have stayed upbeat about the restructuring.

Source: South China Morning Post