HSBC to Eliminate Fixed-Pay Allowances by 2028

The bank confirmed in an internal memo that while these additional payments—historically used to cover costs like commuting—will disappear, base salaries remain untouched. The policy change aims to grant the lender greater flexibility in rewarding high performers. By shifting more compensation into the variable category, the firm intends to sharpen its focus on performance-based incentives and compete more aggressively for specialized talent.

This restructuring arrives as CEO Georges Elhedery, who assumed leadership in September 2024, continues to overhaul the bank’s internal operations. Under his direction, the institution has already begun consolidating business lines and reorganizing into four primary units. According to a spokesperson, the adjustment to pay structures is a strategic move to better align rewards with outcomes delivered to clients and stakeholders.