Bankers and other workers in the financial sector face the smallest bonus payouts and salary increases of the decade in Hong Kong in the midst of historical unrest.
Unnamed lenders in Hong Kong were broadly expecting bonuses equivalent to one or two months’ salary with pay hikes of up to 3 percent, according to an «SCMP» report, marking a stark contrast to last year which posted strong market returns and turnover.
The report specifically named HSBC, and its subsidiary Hang Seng Bank, detailing a decision to give no pay rise to the top three grades of senior staff, namely chief executives and department heads, with just a 1-2 percent hike for remaining staff. This compares with 2-4 percent pay hikes at HSBC in recent years, the report added, while bonus payouts have not been decided.
«We won't comment on market rumor. Our reward decisions are based on employee performance and behavior, taking into account local market considerations,» said a spokeswoman for HSBC, which will announce pay rise and bonuses on February 19, the same day it releases its results.
Brokers No Better
Hong Kong’s local brokerage industry faces no better outlook with some expecting decade-low payouts and conditions for employees. According to Gordon Tsui Luen-on, chairman of the Hong Kong Securities Association, many brokerage houses froze salaries and cut bonuses in post-crisis 2009 and he expects similar behavior in 2020 with some firms even opting to cut pay and staff.
«The pay rise and bonus in early 2020 is going to be the worst in a decade,» said Tsui said.
The brokerage industry’s woes were already further exacerbated earlier this year when local regulators decided to cap margin financing to five times from what was originally an unrestricted matter. The industry lobbied for a delay given the concurrent headwinds it faced from the local environment but the Securities and Futures Commission paid no heed to the plea.
