HSBC Cuts Base Pay for Some Bankers by 25% Before UK Reform (1)

HSBC Holdings Plc is cutting the base pay it offers some newly-promoted senior investment bankers in the UK by a quarter, ahead of a rule change that would allow higher bonuses.

In some areas, new managing directors are now typically offered a salary of about £225,000 ($273,380), compared to £300,000 paid to bankers that already hold the same position, people familiar with the matter said.

A spokesperson for the bank declined to comment. The lender’s decision comes as the British government plans to abandon bonus caps.

WATCH: HSBC is slashing base pay for some newly-promoted senior investment bankers in the UK. Michael Moore has the details.

Source: Bloomberg

Variable pay is currently capped at two times salary for “material risk takers” ...