HSBC's DCM bankers unhappy as M&A bankers receive unexpected retention bonuses

As it winds down its equity capital markets (ECM) and M&A businesses in the UK, Europe and the US, HSBC made most of its job cuts last week. Some of the cuts, however, have spilled over into today. 

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Sources at the bank say HSBC is still cutting sector teams now. As it does so, there are surprises. And disappointments. 

The positive surprises concern bankers staffed on live deals, some of whom have been handed unusually large retention bonuses. The negative surprises concern the debt capital markets (DCM) bankers HSBC wants to keep, whose bonuses appear unexpectedly small.

HSBC declined to comment. Some HSBC M&A bankers in London have seemingly received bonuses that will retain them until early 2026. However, DCM bankers who were expecting to be generously rewarded say their bonuses were barely up on last year when bonuses were particularly poor. 

"No one in DCM in London has lost their job, but a lot of people are unhappy with bonuses," says one insider. "They've been very underwhelming, which seems strange if we're supposed to be focused on debt financing in the future." 

HSBC's compensation report indicated that average total compensation for material risk-takers at the bank went from $1.4m in 2023 to $1.35m in 2024.

Some DCM bankers appear to have been hoping that dead wood would have been cleared from their ranks too in the current cuts. "We thought this would be an opportunity for the bank to retire senior people who should have left years ago," says one MD.

HSBC bonuses will be paid in March. "It will be interesting to see how much attrition there is then," he adds. 

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