HSBC reviews Hong Kong staff's $300,000 school fee subsidy: Bloomberg

HSBC (0005) is reviewing a school fee perk of up to HK$300,000 per kid for Hong Kong's staff in mid-levels and above, aiming to standardize global employees' benefits and cut costs, Bloomberg reported.

The bank is mulling options, including canceling the perk for new employees or adjusting compensation, the report said, adding that HSBC has been reviewing the subsidy for some time, with no decision being made.

As the largest market, Hong Kong is also the lender's only place to offer school fees subsidies. HSBC covers 95 percent of school fees up to HK$220,000 for each child in primary school and HK$300,000 per kid in secondary school.

Hundreds of employees have received the perk that costs tens of millions of US dollars each year. As the benefit is only offered in Hong Kong rather than in other financial hubs of the bank, the difference has caught the attention of its headquarters in London.

Notably, the staff in its unit, Hang Seng Bank, are not provided with the subsidies, the report said.

The spokesperson for HSBC noted that the group commits to offering fair and competitive salaries depending on staff's performance, emphasizing that "Employees in Hong Kong have access to broad professional development opportunities, and a competitive pay and benefits package."

 

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