HSBC chief executive Stuart Gulliver cancels pay freeze after two weeks and raids 2017 bonus fund to cover the cost

Kathryn Gaw
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Stuart Gulliver has pledged to cut costs this year (Source: Getty)

HSBC has cancelled plans for a pay freeze this year, according to a new memo from chief executive Stuart Gulliver.

Less than two weeks ago, it was revealed the bank planned to impose a pay freeze and a hiring freeze across its global business in an effort to save up to $5bn by 2017.

However, in the email to staff this morning, Gulliver said he had listened to feedback and decided to reinstate the pay rises and look at other ways to make cost savings.

"We will therefore proceed with the pay rises as originally proposed by managers as part of the 2015 pay review, noting that, consistent with prior years, not all staff will receive a pay rise," he added.

The pay rises will be funded from the bank’s 2016 variable bonus pool, which was also meant to cover the 2017 bonuses.

Reuters has reported the bank’s hiring freeze will remain in place.

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