HSBC is phasing out its $38,000 annual school fee subsidy for new hires in Hong Kong, a perk long used to attract senior staff to the Asian financial hub. The bank's Asia co-heads informed employees in a Thursday memo that locally hired staff and those transferred from other locations will no longer be eligible for the subsidy, which is capped at HK$300,000 ($38,000) per year. Existing director-level employees who already receive the benefit, as well as those with a child born this year, will retain it.

The move is part of CEO Georges Elhedery's broader cost-cutting drive since taking over in 2024, which has included shutting the equity capital markets division, folding M&A advisory in the US and Europe, and exiting some markets. The change also aligns HSBC's Hong Kong package with that of Hang Seng Bank, which it acquired for $14bn, and with London-based staff who do not receive the subsidy. Fees at top Hong Kong international schools such as the American School and Chinese International School can exceed HK$350,000 annually.

HSBC said it remains focused on rewarding employees fairly and competitively through a broad total reward package.