HSBC cancels pay freeze after employee backlash

'Decided to change the way these cost savings are to be achieved'.

HSBC CEO Stuart Gulliver cancelled a global pay freeze after less than two weeks following an employee backlash, according to two people with knowledge of the matter.

'We have listened to feedback and as a result decided to change the way these cost savings are to be achieved', Gulliver said in a memo sent to staff on Thursday, which was confirmed by an HSBC spokeswoman. 'We will 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'.

Bloomberg News reports that Gulliver imposed a global freeze on hiring and compensation at Europe’s biggest bank on January 29 as part of HSBC’s drive to cut as much as $5bn in costs by the end of 2017.

Banks are attempting to roll back compensation as plunging stock markets and oil prices look likely to exacerbate bleak earnings prospects. UBS froze investment bank salaries this week and Barclays extended a freeze on hiring new staff indefinitely in December, while Credit Suisse and Deutsche Bank are cutting thousands of jobs.

To access the complete Bloomberg News article hit the link below:

HSBC CEO Gulliver Said to End Pay Freeze After Staff Revolt

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