HSBC Ends School Fee Subsidy for New Hong Kong Hires and Transferees
HSBC has withdrawn an education benefit for newly hired staff in Hong Kong and employees transferred to the city. Existing band three employees and managing directors keep the subsidy, which covers 95% of children's school fees, up to HKD 220,000 a year for primary school and HKD 300,000 for secondary school. Hong Kong is HSBC's largest market and its only major operating centre offering the benefit to mid-level and senior staff. Chief Executive Georges Elhedery continues to cut costs.
HSBC has scrapped an education benefit for new hires in Hong Kong and for employees transferred to the city.
Band three employees and managing directors who already receive the benefit will continue to do so, but new hires at the same grades and staff relocated to Hong Kong will no longer be eligible for the education subsidy.
The benefit reimburses 95% of children's school fees, up to HKD 220,000 a year per child for primary school and up to HKD 300,000 a year for secondary school.
Hong Kong is HSBC's largest market and the only major operating centre where the bank provides the school fee subsidy to mid-level and senior employees. Several hundred employees receive the benefit, which costs tens of millions of US dollars a year.
The subsidy does not apply to employees of Hang Seng Bank, which HSBC recently took private.
HSBC Chief Executive Georges Elhedery is continuing to push ahead with cost reductions.
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