HONG KONG – HSBC Holdings is cutting a perk worth up to HK$200,000 (S$32,000) that subsidised some private club access for its Hong Kong bankers, part of a broader restructuring of employee benefits in the Asian financial hub.
Mid-level bankers will lose a subsidy covering 50 per cent of the cost to join a members’ club in Hong Kong after Dec 31, according to an internal memo.
Meanwhile, new joiners to HSBC Hong Kong and Hang Seng Bank will no longer receive the same life assurance coverage as existing staff starting in 2027, the memo said.
Benefits for employees of Hang Seng Bank and HSBC Hong Kong will also be aligned across mortgage perks, medical coverage and life insurance, the memo added.
“We are focused on investing in our employees competitively,” a spokesman for HSBC said in an e-mailed statement. “HSBC and Hang Seng employees in Hong Kong have access to broad learning and development opportunities and a competitive benefits package.”
Under CEO Georges Elhedery, HSBC has been on a restructuring and cost-cutting drive, shutting its equity capital markets and advisory businesses in Europe and the United States while shrinking other units. It has also been working to integrate Hang Seng Bank after completing its acquisition in January.
Earlier in September, HSBC ended a longstanding education benefit for new hires in Hong Kong and for senior staff relocating to the city. It previously covered 95 per cent of school fees at HK$220,000 annually per child in primary school and HK$300,000 per secondary-school child.
Many members’ clubs in Hong Kong have high joining and annual fees, as well as long waiting lists. They often serve as social, business and recreational hubs, some with large sporting facilities. BLOOMBERG
