Higher pay for juniors at HSBC

Recruiters say HSBC has introduced a new retention programme and increased base salaries for its junior corporate and investment banking staff.

"HSBC have been raising the base salaries for quite a few of the analysts and associates they'd like to keep," says a consultant at one recruitment firm, who asked not to be named.

Historically, he says HSBC paid its analysts and associates total compensation 20% to 25% below the market rate. The bank is reportedly now seeking to remedy this.

"HSBC are fighting to keep their staff," says the recruiter. "People are getting salary reviews which are taking them above the market rate - we've seen someone paid around 30% over."

Some of the pay hikes are reportedly taking the form of buybacks offered to staff attempting to move on. But reviews are also said to be on offer for juniors loyal to the bank.

A spokesman for HSBC declined to comment on the issue. But a headhunter close to the firm confirmed the hikes are taking place. "There's a combination of salary increases and the introduction of a long term incentive plan, under which associates are now being offered deferred HSBC stock," he says.

The pay review is understood to apply only to junior staff. "There is a recognition that junior staff are there to help execute the business and that the bank needs to pay the market rate for these guys," says the headhunter.