HSBC is reviewing a perk that covers school fees for hundreds of senior staff in Hong Kong, according to reports. The benefit, which costs the lender tens of millions of dollars a year, is not available to employees in the group's other global hubs, including London.
The subsidy covers 95% of annual school fees up to HK$220,000 (£20,700) for each child in primary school and HK$300,000 for secondary school. This perk is also not offered to staff at Hang Seng Bank, which HSBC fully acquired in January.
The review comes as part of a broader overhaul under chief executive Georges Elhedery, who has been pushing cost cuts and simplifying the bank's structure. Elhedery recently said he is 'ruthless about killing complexity' in a bid to make the lender more agile.
International school fees in Hong Kong have been rising, with the English Schools Foundation planning to increase tuition by an average of 4.1% next year. HSBC generates most of its profits in Hong Kong and China and is doubling down on Asia with the Hang Seng purchase.
An HSBC spokesperson said: 'We are focused on rewarding our employees fairly and competitively, on the basis of their performance. HSBC employees in Hong Kong have access to broad professional development opportunities and a competitive pay and benefits package.'
