HSBC plans performance-related pay hike following Q3 earnings boost
Investing.com | Editor Ambhini Aishwarya
Published Oct 30, 2023 01:57AM ET
HSBC Holdings Plc (LON:HSBA) is considering a rise in performance-related pay in response to a significant increase in third-quarter earnings, a move that could result in a 1% increase in operating expenses. The decision comes on the heels of the UK's Prudential Regulation Authority's decision to eliminate the cap on bankers' bonuses, which was previously set at double the base pay, starting October 31.
Despite seeing a substantial upswing in its third-quarter pretax profit to $7.71 billion, HSBC fell short of analyst estimates of $8.1 billion. This shortfall and the prospective increase in operating expenses are key considerations for the banking giant.
In light of these factors, HSBC also announced a repurchase plan to buy back up to $3 billion in shares. The share buyback strategy is influenced by considerations such as performance-related pay and bankers' bonuses, underscoring the financial institution's strategic approach towards balancing its financial obligations and rewarding its workforce.
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