Swiss private bank HSBC is implementing staff retention measures, including a compensation increase, following a series of executive departures, Bloomberg reported, citing people familiar with the matter.
The bank is also leveraging the leadership of its business in the Middle East to support its operations in Switzerland.
According to sources, HSBC’s Swiss division has increased the salaries of some employees, including relationship managers, to discourage departures.
This follows several recent departures from the unit, notably acting director John Shipman, who left the previous month to join Barclays.
HSBC has hired Samir Assaf, president of its Middle East business, to advise the Swiss private bank.
Assaf, former head of global banking and markets and current adviser to the bank’s president and chief executive, will spend time in Geneva to help the unit, according to the sources.
In response to Bloomberg’s queries about retention payments, HSBC stated: “We continue to attract the best talent at HSBC and invest in our people.”
Responding to questions about Assaf’s involvement, HSBC said: “Our strategy is to significantly grow our wealth business.”
Bloomberg previously reported that HSBC’s Swiss business is ending its relationships with more than a thousand wealthy clients in the Middle East region, including those with assets of more than $100 million.
The Swiss private bank is currently under scrutiny by Swiss regulator Finma, which previously found that the unit had not carried out adequate due diligence on high-risk accounts owned by people with political exposure.
Additionally, Swiss federal prosecutors have opened an investigation into the split.
Following Shipman’s departure, HSBC announced last month that Daniel Calado would serve as interim head of the Swiss private bank.
Retention packages are a standard incentive used by companies to retain key employees during periods of uncertainty, especially when competitors may attempt to attract talent with competitive offers.
For example, UBS gave around $500 million in retention packages to Credit Suisse staff it wanted to retain after the merger of Switzerland’s largest banks was announced.
“Swiss private bank HSBC raises staff pay amid executive departures: report” was created and originally published by Private Banker International, a brand owned by GlobalData.
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