Employees at HSBC might need to wait until January 2018 before they see their next promotion. The company is reportedly under an unofficial “promotion freeze” through 2017.
According to the New York Post, the company is attempting to rein in costs, with a plan that effectively stalls career development for investment bankers. It also delays promotions at the vice president and senior vice president level.
The promotion to an SVP or Managing Director comes with a hefty paycheck. As a senior vice president you earn a base salary of about $200,000 to $250,000 a year before bonuses. MD’s at the bank take home $300,000 to $400,000 base pay.
The company said in an email to employees on Monday that it was instituting a hiring and pay freeze as part of its efforts to save $5 billion over the next two years.
The Post says some employees are considering jumping ship and questioning how much longer the investment bank will remain in business.
“As we called out in our Investor Update in June 2015, we have targeted significant cost reductions by the end of 2017,” HSBC spokesman Robert Sherman told The Post
HSBC is attempting to make its investment bank one-third more lean, and is considering moving its headquarters to Hong Kong in a move meant to cut down its tax bill.